After hitting another record high Sensex and Nifty close in the red; here's what led the surge

The stock market hit fresh record highs on Monday with the Nifty crossing 23100 and the Sensex surging past 76,000 for the first time. However, by the end of the day, the indices shed their gains and closed marginally in the red.

As per a Moneycontrol report quoting experts, multiple factors are responsible for the surge in the indices.

Global factors include strong global cues stemming from easing US consumer inflation expectations as well as a decline in crude prices, which is now well below the $80 per barrel mark that it hit on May 17th.

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On the other hand, the nervousness over BJP's seat tally has eased considerably ahead of the results announcement on June 4th with increased confidence among investors about the incumbent government's return and continuing policy action which also resulted in FIIs turning net buyers in the previous week.

Among other reasons, a rally in banking and IT stocks as well as RBI's record dividend payout of 2.11 lakh crore also contributed to the renewed optimism in the markets.