Sensex Crosses 80,000 for the First Time, Nifty Reaches New Peaks; HDFC Bank Gains on Positive Global Cues

On July 3, the benchmark indices Nifty and Sensex reached new all-time highs, driven by positive global trends. The Sensex surpassed the 80,000 mark for the first time, propelled by gains in banking and FMCG stocks. 

The S&P 500 ended at 5,509, achieving its first close above the 5,500 mark. Meanwhile, the Nasdaq Composite rose by almost one percent, reaching 18,028, setting yet another record high.

Domestically, around 9:20 am, the Sensex increased by 0.61% to reach 79,923, while the Nifty rose by 0.55% to 24,257. Approximately 2,086 shares advanced, 699 shares declined, and 100 shares remained unchanged.

HDFC Bank, the largest private bank in the country, garnered attention as its weightage in the MSCI index is anticipated to increase. This adjustment provides Foreign Institutional Investors (FIIs) more scope to purchase the stock, which could boost the index further. Consequently, the Bank Nifty surged, reaching a new record high of 53,201.50.

"Irrespective of blips, the market sentiment remains largely intact as large caps are showing strength because of support from foreign institutional investors (FIIs) and some support from valuations and that's what the market is detecting," Aishvarya Dadheech, founder and CIO of Fident Asset Management, told Moneycontrol.

The long-short ratio of Foreign Institutional Investors (FIIs) has surpassed 80%, signifying a positive outlook and robust buying interest from them. This strong interest in heavyweight stocks is likely to maintain the positive momentum in the index.

Read Sensex Jumps 10,000 Points to Hit 80,000 in Record Time

The broader market, encompassing midcap and smallcap indices, lagged behind the headline indices, with both trading only 0.3% and 0.5% higher, respectively. "The two indices are acting very weird as their performance has been erratic and that's likely to continue as there's some nervousness regarding budget expectations," Dadheech said.

"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, followed by 24,300 and 24,400," Deven Mehata of Choice Broking said. "The charts of Bank Nifty indicate that it may get support at 52,100, followed by 52,000 and 51,800," he added.

Among the major gainers on the Nifty were HDFC Bank, Kotak Mahindra Bank, HDFC Life, Britannia Industries, and Tata Consumer. On the other hand, the notable losers included Sun Pharma, TCS, UltraTech Cement, Tech Mahindra, and Infosys.