Sensex, Nifty hit lifetime highs, investor wealth surges by Rs 4.28 lakh cr

Mumbai: As the Lok Sabha polls approach their conclusion in a fortnight, the benchmark stock indices Sensex and Nifty experienced a surge of over 1.6 per cent, reaching record high levels on Thursday. This surge resulted in an increase in investors’ wealth by Rs 4.28 lakh crore.

The BSE Sensex reclaimed the 75,000 level, closing at a record high of 75,418.04, an increase of 1,196.98 points or 1.61 per cent. It even touched an all-time intraday high of 75,499.91, marking its largest single-day gain since January 29.

The NSE Nifty made strides towards the 23,000 mark. The index rose by 369.85 points or 1.64 per cent to 22,967.65, and even reached an intra-day record peak of 22,993.60.

The general elections results are due on June 4, with the final two phases of polling scheduled for May 25 and June 1.

The market capitalisation of BSE-listed companies hit an all-time high of Rs 4,20,22,635.90 crore ($5.05 trillion), increasing investors’ wealth by Rs 4,28,602.18 crore. The market capitalisation of NSE-listed companies also reached the $5 trillion milestone at Thursday’s close.

Major gainers among the Sensex companies included Mahindra & Mahindra, Larsen & Toubro, Axis Bank, Maruti, UltraTech Cement, IndusInd Bank, HDFC Bank, Bharti Airtel, ICICI Bank, Titan, Tata Consultancy Services and Reliance Industries, while Sun Pharma, PowerGrid and NTPC lagged behind.

The Reserve Bank of India announced a record dividend of Rs 2.1 lakh crore to the government for the fiscal year ending March 31, more than double the budgeted expectation. This will bolster revenue as a new government prepares to take office.

In the broader market, the BSE midcap index rose by 0.58 per cent and the smallcap index increased by 0.27 per cent.

Markets closed at a new all-time high, buoyed by short covering, positive investor sentiment regarding the election outcome, and robust macroeconomic indicators, including the record dividend payout by the RBI, according to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.

Among the indices, auto rose by 2.28 per cent, capital goods by 2.13 per cent, bankex by 1.98 per cent, financial services by 1.64 per cent, services by 1.63 per cent, teck by 1.42 per cent, consumer discretionary by 1.19 per cent and IT by 1.18 per cent.

The metal index was the only one to fall.

The Nifty saw its largest percentage increase in nearly six months on May 23, according to Deepak Jasani, Head of Retail Research, HDFC Securities.

In international markets, Tokyo ended in the green, while Seoul, Shanghai and Hong Kong closed lower. European markets were mostly trading in the green, while Wall Street closed lower on Wednesday.

The global oil benchmark Brent crude rose by 0.33 per cent to $82.17 a barrel.

Foreign Institutional Investors (FIIs) were net buyers on Thursday, purchasing equities worth Rs 4,670.95 crore, as per exchange data.