Both major Indian stock market indices, the Nifty and Sensex, reached new all-time high levels on July 3, 2024. Nifty hits a record, partly attributed to positive signals from global markets that led to improved investor sentiment in India.

The S&P BSE Sensex, which tracks 30 large, well-established and financially sound companies, crossed the 80,000 point mark for the first time in its history. Banking, both public and private sectors and Fast Moving Consumer Goods (FMCG) stocks are likely to have contributed to this, driving their performance higher.

Nifty hits a record
Image Source: Wikipedia

Sensex was trading up 0.61% at 79,923 points as of 9:20am (IST), and it is the benchmark index of the Bombay Stock Exchange. Nifty was up 0.55% at 24,257 points and it is the benchmark index of the National Stock Exchange of India (NSE).

US Markets S&P 500 and Nasdaq Composite closed at 5,509 points and 18,028 points respectively. Both of these are record highs.

These figures indicate a generally positive market sentiment, with more stocks gaining than losing. It also paints a very bullish trend in both US and Indian stock markets, which major indices reaching new highs and approaching significant milestones. US markets often influence global markets—including that of India, and a rise in its trend may have contributed to the upward movement in Indian indices as well.

Nifty hits a record
Image Source: Research & Ranking

HDFC Bank’s weightage in the MSCI index is expected to increase due to Foreign Institution Investors (FII) having a ‘greater room to buy stock’ meaning that foreign ownership in the stocks may have decreased below certain thresholds, allowing more room for foreign investment within regulatory limits.

Nifty Bank hit a record high of 53,201.50—it’s rise is attributed to the news about HDFC bank breaking. According to Moneycontrol, Aishvarya Dadheech, found and CIO of Fident Asset Management notes that market sentiment remains positive.

“Irrespective of blips, the market sentiment remains largely intact as large caps are showing strength because of support from foreign institutional investors and some support from valuations and that’s what the market is detecting,” she said.

The FIIs’ long-short ratio is above 80%, indicating strong buying interest in heavyweight stocks. This is expected to maintain positive momentum in the index.

Broadly, mid-cap and small-cap indices did not perform as well compared to the main indices. In dialogue with Moneycontrol, Dadheech describes their performance as ‘erratic’ and attributes this to nervousness about budget expectations. She expects their continued fluctuations.

Major gainers in the stock performance include HDFC Bank, Kotak Mahindra Bank, HDFC Life, Britannia Industries and Tata Consumer—while those who’ve lost out include Sun Pharma, TCS, UltraTech Cement, Tech Mahindra and Infosys.

Motilal Oswal Financial Services states that, “We expect this ongoing momentum to continue with Nifty consolidating at a higher zone.”

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