During the afternoon session on Thursday, the benchmark indices posted a strong rally led by banking and IT stocks. The NIFTY 50 breached its previous high of 22,794 to make new high of 22,852 by rising over 200 points.
The BSE SENSEX too is inching closer to its previous high of 75,124 and currently trading over 700 points higher at 74,923. The Bank Nifty was trading in green at 48,551.60, up by 764 points or 1.6%. India VIX fell 0.78% and is trading at 21.30.
Key factors behind market rise
Yesterday, RBI announced a record dividend payout of ₹2.11 lakh crore to the government for FY24, which was 140% higher compared to FY23. As per experts, record dividend payout by RBI could help the government reduce its fiscal deficit and step up infrastructure spending.
Bond yield on benchmark 10-year government bonds saw a sharp decline, closing near its one-year low at 6.9919% in yesterday’s session. As per experts, bond yields have declined sharply, reflecting lower borrowing by the government. A decline in bond yields is positive for banking stocks.
Experts also believe recent election-related jitters also seemed to have settled down, supporting NIFTY50 to make new all-time highs.
NIFTY50: Gainers and losers
The top gainers on the NIFTY50 Index are as follows: Adani Enterprises Ltd (+2.21%), Axis Bank (+2.03%), L&T (+1.76%), SBI (+1.64%), and Eicher Motors (+1.40%). The top losers are Sun Pharma (-3.85%), Power Grid (-3.64%), Hindalco (-2.18%), JSW Steel (-1.36%), and Grasim (-1.19%).
Sector-wise, the top-performing indices during the mid-day were Nifty PSU Bank (+2.00%), Nifty Bank (+1.59%), and Nifty IT (+1.4%). On the flip side, Nifty Pharma (-0.28%) and Nifty Metal (-0.44%) were the top losers. The market breadth is in favour of advances with 1,236 stocks advancing, while 1,229 stocks declined.
On Wall Street, Dow Jones futures were trading at 39,827 with an increase of 42 points or 0.11%.
In the afternoon session on the Nifty 500 index, some trending stocks were PNC Infratech Ltd, Metropolis Healthcare Ltd and General Insurance Corporation of India.
Key stocks in focus today
Shares of Garden Reach Shipbuilders & Engineers Ltd zoomed 14.77% on Thursday to trade at ₹1,368.75 over its previous closing. Today, the stock’s intraday high and low was ₹1,424.80 and ₹1,300, respectively. The stock rallied as the company posted strong financial results for the quarter ending March 31, 2024, with revenue crossing the ₹1000 crore mark, rising 69% YoY.
IRFC Ltd jumped by 8.34% and was trading at ₹190.30 above its previous closing. Today, the intraday high and low of IRFC was ₹191.65 and ₹175.90, respectively. The stock rallied as the company posted robust financial performance for the quarter ending March 31, 2024, with a 34% increase in net profit to ₹1,717 crore.
The stock of Engineers India Ltd climbed 6.43% on Thursday to trade at ₹286.45. The intraday high and low of Engineers India were ₹287 and ₹267.35, respectively. The company is likely to announce its financial results and recommend a final dividend in the board meeting to be held on May 28, 2024.
