Sensex reaches fresh record high, opens above 80,300
The S&P BSE 30 share benchmark index, also known as the Sensex, opened at an unprecedented high of over 80,300 on Thursday morning. This milestone follows the index's brief crossing of the 80,000 mark on Wednesday. The Sensex has achieved its quickest 10,000-point ascent in history, spanning approximately 138 sessions from December 11, 2023, to July 4, 2024.
Positive global data and monsoon progress bolster investor confidence
Encouraging global data and the advancement of the monsoon season in India have fortified investor confidence, resulting in a 300-point increase in the Sensex on Thursday. In the United States, weaker economic data has led to a softening of bond yields, reinforcing the Federal Reserve's case for initiating rate cuts this year. These factors are anticipated to motivate Foreign Portfolio Investors (FPI) to maintain their buying positions in the markets.
HDFC Bank fuels Sensex rally, foresees significant inflows
HDFC Bank has been a significant driver of the recent gains in the Sensex. The bank is expected to attract $3 billion in passive fund inflows due to its potential increase in weightage in the MSCI Index. The bank's shares increased by 2.2% after it was disclosed that foreign holding had fallen to 54.8%. This decrease has triggered a re-rating of the stock and expanded its availability for global investors, potentially leading to inflows of $3-$4 billion.
