The Indian stock market experienced a robust session on May 23, 2024, with both the Nifty 50 and the Sensex indices recording significant gains. The Nifty 50 surged by 113.90 points, or 0.50%, to close at 22,711.70, while the Sensex rose by 372.61 points, or 0.50%, to settle at 74,593.67. Among the major contributors to this upward trend were Axis Bank, L&T, SBI, and ICICI Bank.
The positive sentiment in the market was further buoyed by the performance of the Nifty Bank index, which climbed by 1.21% to 48,361.30. This was supported by strong performances from several leading banks, contributing to the overall bullish atmosphere. Also, the India VIX increased by 0.5% to 21.5, indicating a moderate rise in market uncertainty.
The Nifty PSU Bank emerged as the best-performing sector, rising by 1.86% to 7375.20. On the other hand, the Nifty Metal sector was the worst performer, declining by 1.37% to 9783.95. This divergence in sectoral performance highlights the varying investor sentiment across different segments of the market.
Adani Enterprises stood out as the biggest gainer, climbing by 2.48% to Rs 3,219.00. Conversely, Sun Pharma was the biggest loser, falling by 3.85% to Rs 1,480.05. This mixed performance among stocks underscores the selective nature of the market’s upward movement.
Several corporate news events also influenced market dynamics. Garden Reach Shipbuilders & Engineers saw its shares surge over 18% to hit a record high of Rs 1,411. This impressive gain was attributed to the company’s robust fourth-quarter results, which saw revenue cross Rs 1,000 crore, marking a 69% increase compared to the same period last year. The company’s net profit also doubled to Rs 112 crore during the quarter.
The Gujarat Pollution Control Board revoked the closure order for Aether Industries’ manufacturing facility II, providing a positive boost to the company’s stock. This decision alleviated investor concerns and contributed to a more optimistic outlook for the company’s future operations.
Oil prices continued their downward trend, with Brent crude falling to $81.44 per barrel and WTI crude declining to $77.03 per barrel. This marked the fourth consecutive session of falling oil prices, driven by concerns over potential US interest rate hikes and their impact on oil demand.
The market also saw some notable debuts and deals. Go Digit General Insurance made a muted debut, listing at Rs 286, a 5.14% premium over its issue price of Rs 272. Quest Laboratories Limited, had a more impressive debut on the NSE SME platform, listing at Rs 155, a 60% premium over its issue price of Rs 97. These listings highlight the ongoing interest and activity in the IPO market.
Ericsson India announced that it is in talks with Vodafone Idea for a 5G deal. This potential collaboration aims to secure fresh 4G and 5G equipment orders, which will facilitate network expansion over the next few months. This development is expected to enhance Vodafone Idea’s network capabilities and support its growth plans.
Godrej Properties reported substantial sales worth Rs 2,000 crore for its Noida project, Godrej Jardinia. This achievement underscores the strong demand for residential properties in key urban markets and reflects positively on the company’s strategic initiatives.
The Indian stock market’s performance on May 23, 2024, was marked by positive momentum, driven by strong gains in key indices and sectors. Corporate earnings, notable stock movements, and significant deals contributed to the optimistic market sentiment, even as investors remained watchful of global economic cues and potential volatility.
