Nifty surge on RBI announcement..!!
The indian stock market rose nearly 1 percent today, with the Sensex gaining over 1,000 points and the Nifty crossing the 22,900 mark for the first time, giving investors a pleasant surprise. In today's trade, the Sensex index of the mumbai Stock Exchange reached a high of 75,407.39 points. It is noteworthy that earlier it touched the level of 75,095.18 on May 3. The National Stock Exchange (NSE) Nifty 50 touched an all-time high of 22,959.70 during afternoon trade. The main reason for this sharp rise in these two major stock market indices is the important announcement made by the Governing Council of the reserve bank of india on Wednesday.
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It has approved a dividend amount of Rs.2.11 lakh crore to the central government for the year 2023-24. This is not only the largest amount in the history of india but also because the country's economy has contributed 2.11 lakh crore instead of 1 lakh crore expected. On the day after this announcement, today, May 23, the stock market surged and Nifty touched its all-time high. That's right, RBI, what is the connection between the money given to the central government and the rise in the stock market..? .jpg)
Market experts believe that this "bumper payout" could create an environment for the central government to reduce the central government's fiscal deficit in the range of 0.2 to 0.4 percent in fiscal 2025. advertisement The RBI's dividend distribution of Rs 2.11 lakh crore is higher than the Rs 1.02 lakh crore allocated in the central government's interim budget. According to a Kotak Institutional report, achieving the central government's fiscal targets will become much easier with the dividend payout by the RBI. Thus the government can continue to increase infrastructure (capex) spending by increasing allocations for roads, railways, and defence. This is the main reason for today's stock market rise. With this surplus fund, whoever forms the government at the center can make excessive investments in the capex sector. This led to a sharp rise in the stock market with Adani Enterprises, Axis Bank, Larsen & Toubro Ltd, adani Ports, and mahindra & mahindra among the top gainers on the NSE.
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