The Indian benchmark indices witnessed a historic surge today, with the Sensex surpassing the 80,000 mark for the first time, driven primarily by HDFC Bank’s stellar performance. The Nifty50 index also recorded a fresh high, climbing 169 points to close at 24,292.
HDFC Bank, a key player in the index, saw its stock jump approximately 3% to reach a new 52-week high at Rs 1,791.90. This rally was fueled by investor optimism surrounding the potential increase in the bank’s weightage in the MSCI Emerging Markets index. The bank emerged as the top gainer on the Sensex, followed by Kotak Bank, Bajaj Finance, Bajaj Finserv, and M&M.
Conversely, Tech Mahindra, TCS, Sun Pharma, Infosys, and Bharti Airtel led the list of losers on the Sensex.
Market analysts expect HDFC Bank to continue its upward trajectory, bolstered by delivery-based buying. This momentum is anticipated to persist in the coming days, further strengthening the stock and imparting resilience to the broader market.
As HDFC Bank’s weightage in the Nifty index increases, more delivery-based buying by ETFs and active funds is expected. However, this could result in a marginal negative impact on other high-weightage stocks in the Nifty, such as RIL, TCS, Infosys, and ICICI Bank.
The positive sentiment extended to the Asia-Pacific markets as well, buoyed by US Federal Reserve Chair Jerome Powell’s remarks indicating progress in controlling inflation. Investors are also keenly awaiting the release of crucial June business activity data from India and China later today.
Japanโs Nikkei 225 climbed 0.69%, while the broader Topix index traded flat, down marginally by 0.06%. South Koreaโs Kospi edged up by 0.14%, and the Kosdaq, which focuses on small-cap stocks, gained 0.25%. Australiaโs S&P/ASX 200 rose by 0.13%.
Overnight in the US, the Dow Jones Industrial Average increased by 0.41%, the S&P 500 advanced by 0.62%, and the Nasdaq Composite surged by 0.84%. Both the Nasdaq and the S&P 500 achieved record high closing levels, adding to the global positive market sentiment.
