The Nifty 50 index soared to a historic high of 23,000 points on Friday, May 24, marking a significant milestone in its upward trajectory. This achievement comes after a steady climb, with the index gaining 1,000 points over 88 trading sessions since it first crossed the 22,000 mark in January. The index has shown a robust recovery, surging over 4,666 points from its 52-week low of 18,333.15.
Today's upswing was driven by several factors, including positive global cues and a record-breaking dividend announcement by the Reserve Bank of India (RBI). The substantial dividend declaration by the RBI injected fresh optimism into the market, boosting investor sentiment and paving the way for increased infrastructure spending, as noted by Siddhartha Khemka, Head of Retail Research at Motilal Oswal. The bullish momentum was further fueled by the weekly options expiry for Nifty 50 contracts, adding to the enthusiasm among traders and investors.
Amidst this exuberance, certain sectors emerged as frontrunners. Auto stocks like Mahindra & Mahindra reached new heights, while metal giants Hindalco and Tata Steel made notable gains. Bharti Airtel also stood out among the top performers, highlighting the diversified strength of the market rally. However, the IT sector lagged behind, with prominent stocks such as HCLTech, Infosys, Wipro, and LTIMindtree experiencing a downturn over the past three months. As the Nifty 50 index reaches new record highs, stakeholders in the financial sector remain vigilant, navigating the evolving market dynamics and seizing opportunities amidst a backdrop of global positivity and domestic resilience.