Active Stocks
Thu Jun 13 2024 15:59:47
  1. Tata Steel share price
  2. 182.50 0.14%
  1. State Bank Of India share price
  2. 843.90 0.57%
  1. Wipro share price
  2. 482.40 1.15%
  1. NTPC share price
  2. 369.95 -0.38%
  1. Tata Motors share price
  2. 985.75 -0.29%
Business News/ Markets / Stock Markets/  Record high! These 5 heavyweights contributed over 50% to Sensex's 1,115-point run today
BackBack

Record high! These 5 heavyweights contributed over 50% to Sensex's 1,115-point run today

Top 5 index heavyweights drove over 50% of Sensex's 1,115-point surge. The rally was fueled by strong Q4 earnings, RBI's record dividend payout, election outcome certainty, and reduced foreign selling.

Top 5 index heavyweights drove over 50% of Sensex's 1,115-point surge.Premium
Top 5 index heavyweights drove over 50% of Sensex's 1,115-point surge.

Five index heavyweights – HDFC Bank, Reliance Industries, ICICI Bank, L&T and Axis Bank – contributed over 50 percent to the 1,197-point run in the S&P BSE Sensex today.

The benchmark index soared 1,197 points (over 1.6 percent) to reclaim the 75,000 mark and end at its record closing high of 75,418. In intra-day deals, the benchmark rallied 1,279 points to its record high of 75,499.91. Today's surge comes on the back of better-than-expected Q4 earnings, the RBI's record dividend payout to govt, increased certainty surrounding the election outcome, and reduced foreign investor selling in the last few days.

Meanwhile, the NSE Nifty 50 index climb to an all-time high of 22,993.60. At close, the Nifty 50 was at 22,967.65, up 369.85 points, or 1.64 percent. The broader market indices closed higher, with the BSE MidCap index gaining 0.58% and the BSE SmallCap gaining 0.27%.

Read here Why is the Indian stock market rising?- explained with 5 key factors

"Indian markets hitting a new record is the market’s message of political stability after the elections. The rally is healthy since it is led by fairly valued largecaps," said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

HDFC Bank was the top contributor to the Sensex's rally, with a 215-point contribution. The stock rose over 2 percent. Meanwhile, RIL (158 points), ICICI Bank (136 points), and L&T (121 points) also contributed significantly to today's gain in the benchmark index. Meanwhile, Axis Bank contributed 92 points to the Sensex jump.

Moving on to stock price performance in the index, RIL gained 1.8 percent, ICICI Bank advanced 2 percent, L&T rose 3.6 percent and Axis Bank added 3.3 percent. L&T was the top gainer in the index.

Read here: Nifty may see a rally to 23,000, but can that last longer?

Meanwhile, M&M, Maruti Suzuki, UltraTech Cement, IndusInd Bank, Titan, Bharti Airtel, TCS, SBI, Bajaj Finserv, and Tata Motors also rose over 1.5 percent each in today's deals.

However, 3 stocks on the index were in the red - NTPC, down 0.43 percent, PowerGrid, down 1.8 percent, and Sun Pharma, down 2.9 percent.

Reasons behind today's surge

According to experts, the unprecedented 2.11 lakh crore dividend from the Reserve Bank of India, announced yesterday, is anticipated to aid the government in managing the fiscal deficit. This a surprise for the market as the market was projecting a 1 lakh crore dividend.

Read here: Sebi: What does the new circular say about SMS alerts to investors?

Furthermore, investors have now become more optimistic about a decisive victory for the BJP in the ongoing general elections. According to analysts at foreign brokerage Bernstein, there is a higher likelihood of the BJP government winning approximately 330-350 seats.

Additionally, foreign portfolio investors have decreased their selling activity in recent days. Over the past five trading sessions, FIIs have net sold stocks worth 1,813 crore, compared to net sales totaling 38,186 crore in May thus far. Moreover, the US 10-year yield has declined to 4.43 percent from a peak of 4.73 percent one month ago.

Sectors

Barring Healthcare and Pharma indices, which were closed down 0.79% and 0.52% respectively, all othe sectoral indices closed in the green.

The Bank and Auto indices had rallied more than 2% at close, while Financial Services, IT, Realty, Consumer Durables, and Oil & Gas indices had climbed more than 1%.

FMCG, Media and Metal indices also closed in the green.

3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 23 May 2024, 02:34 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started