Domestic equity benchmarks Nifty 50 and Sensex settled flat in the previous session, but logged their best week since early February, driven by gains in financials and metal stocks. Nifty 50 surpassed the 23,000 mark for the first time ever on Friday and the indices recorded their biggest two-week gain in the last five months as the election fever has gripped the pulse on D-Street.
The frontline indices gained 2.2 per cent and 2.02 per cent on the week amid the broader bull run picked up ahead of the Lok Sabha election results on June 4. The weekly rise in Indian benchmarks was fuelled by foreign investors dialling back bearish bets on domestic equities ahead of the June 4 election results, as well as the Reserve Bank of India’s record dividend to the government.
“Both factors have boosted sentiment. With surplus liquidity coming back to the system, there’s a much lower requirement for the government to raise more funds via bonds,” said Aishwarya Dadheech, the founder and chief investment officer at Fident Asset Management.
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Published: 25 May 2024, 09:17 PM IST
