Stock Market Today: Indian stock market indices Sensex and Nifty 50 ended flat on Friday, May 24, after swinging negative on profit booking at record levels amid a weak global economy.
The Sensex index hit an all-time high of 75,636.50 during trading hours but could not sustain the gains and closed down 8 points at 75,410.39, while the Nifty 50 index hit an all-time high of 23,026.40 during trading hours before dropping 11 points to close at 22,957.10.
The Indian stock market is currently lacking new catalysts to sustain and extend its gains. The previous day’s big gains were driven by the Reserve Bank of India’s large dividend payment to the central government. However, with this development priced in, the market’s attention has shifted to fundamentals, valuations and global trends.
Related article: Bull markets need fuel from equity or debt: First Global’s Shankar Sharma
Election-related fears have eased, but speculation will likely keep markets volatile until the election results are announced.
Related article: 2024 Lok Sabha Elections: Markets could plummet by 20% if election results are different from expectations – Expert
Fading prospects for an interest rate cut by the Federal Reserve this year continue to weigh on sentiment.
Minutes from the Federal Reserve’s May policy meeting showed that central bank officials still weren’t convinced that inflation was moving sustainably toward the central bank’s 2% target, and many of them have signaled a willingness to tighten monetary policy further if necessary.
Related article: Federal Reserve meeting minutes show officials support higher interest rates for longer
The BSE Midcap index outperformed the benchmark Sensex index, hitting a fresh record high of 43,777.64 before closing 0.23 per cent higher at 43,519.44.
The BSE Small Cap index also scaled new highs but could not sustain the gains and ended at 47,996.45, down 0.20 per cent.
(To be continued)
You are on Mint! India’s No.1 News Site (Source: Press Gazette). For more of our business coverage and market insights, click here!
