Nifty hits fresh record high, surpasses 23,000 mark
Nifty has achieved a new record high on Friday, May 24, 2024, surpassing the significant 23,000 mark during early morning trading. This milestone was reached after a rally of 1,000 points from the previous mark of 22,000 set on January 15. The latest 1,000-point rally spanned over a total of 88 trading sessions, taking longer than previous ones. To recall, the jump from 21,000 to 22,000 was achieved in just 25 sessions.
Major gainers and losers in the latest rally
Mahindra & Mahindra led the gainers with an increase of over 60%. Bharat Petroleum Corporation and Power Grid Corporation of India followed with over 41% and 33%, respectively. Meanwhile, LTIMindtree experienced the most significant loss with a decline of over 22%. IndusInd Bank and HCL Tech also saw declines of roughly 14% and 12%, respectively. Asian Paints and HDFC Life Insurance experienced drops crossing 11%, whereas Bajaj Finance and HDFC Bank declined more than 10% each.
Broader markets and foreign funds' role
In broader markets, BSE MidCap and SmallCap are trading around fresh record highs, with gains of over 15% and 8%, respectively. Despite these gains, the overall market trend was perplexing on May 23. Foreign funds changed their recent trend of being net sellers to become net buyers on Thursday. The market breadth also turned negative, with over 2,000 stocks declining on BSE and 1,370 on NSE, surpassing the number of advances.
Expert's view on market momentum and future prospects
MD of DRChoksey FinServ, Deven Choksey, noted that the momentum from foreign institutional investors (FIIs) is not surprising, given their big investments in ETFs and index funds. As Nifty aims for the next milestone at the 24,000 mark, FIIs are tipped to further drive market momentum for possible gains. Despite a bit of negative market breadth yesterday, expectation for positive market breadth is fueled by election outcomes and Reserve Bank of India's announcement of an over ₹2 lakh crore dividend.
