Sensex crosses 80,000 for first time; Nifty hits record high
What's the story
On July 3, India's benchmark indices, the Sensex and Nifty, reached unprecedented heights due to positive global cues. The Sensex crossed the historic 80,000 mark for the first time ever, propelled by a surge in banking and FMCG stocks. Concurrently, the Nifty also edged higher by 0.55% to stand at a record high of 24,257.
Market dynamics
HDFC Bank in spotlight; FIIs show strong buying interest
HDFC Bank, India's largest private bank, drew significant attention as its weightage in the MSCI index is anticipated to increase due to more opportunities for Foreign Institutional Investors (FIIs) to purchase stock. Aishvarya Dadheech, founder and CIO of Fident Asset Management, noted that market sentiment "remains largely intact" with large caps gaining strength from FIIs'ss support. The FIIs'ss long-short ratio now exceeds 80%, indicating a robust buying interest that could sustain positivity in the index.
Market performance
Midcap, smallcap indices underperform; nervousness over budget
Despite the record-breaking performance of headline indices, midcap and smallcap indices lagged behind, trading only 0.3 and 0.5% higher, respectively. Dadheech observed that these two indices have been "acting very weird" due to "some nervousness regarding budget expectations." Meanwhile, Deven Mehata of Choice Broking provided technical analysis indicating potential support and resistance levels for the Nifty in the near future.
Market trends
Major gainers and losers on the Nifty
Mehata provided further technical analysis, stating that "Nifty can find support at 24,100 followed by 24,000 and 23,950. On the higher side, 24,250 can be an immediate resistance." Among the major gainers on the Nifty were HDFC Bank, Kotak Mahindra Bank, HDFC Life, Britannia Industries and Tata Consumer. Conversely, Sun Pharma, TCS, UltraTech Cement, Tech Mahindra and Infosys were among the day's losers.