Sensex above 80,000 for the first time: What's fueling the rally ahead of Budget

A strong rally in banking stocks drove the Nifty Bank index to a new all-time high of 53,201.

Updated on: Jul 3, 2024, 15:29:14 IST

By HT News Desk

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The Indian stock market rose to an all-time high today (July 3) as Sensex crossed the 80,000 mark for the first time ever. The gains in Sensex were primarily driven by index heavyweight HDFC Bank as the stock rallied around 3 per cent to hit a fresh 52-week high owing to news of potentially increasing the weightage of the Nifty stock in the MSCI EM index. Here's why stock market is rising today:

Stock market today: A bird flies past a screen displaying the Sensex results on the facade of the Bombay Stock Exchange (BSE) building in Mumbai. (Reuters)

HDFC Bank

HDFC Bank's weight in the MSCI EM Index is around 3.8 per cent which could jump 7.2 percent-7.5 percent following reshuffle as a possible doubling can bring in up to $4 billion of FII flows and the stock can cross the ₹1,900 mark, as per Nuvama Institutional Equities. The stock contributed to 50 percent gains for Sensex today.

What about other banking stocks?

Stocks of Axis Bank, ICICI Bank, and Kotak Bank also supported frontline indices as a strong rally in banking stocks drove the Nifty Bank index to a new all-time high of 53,201.

What about FMCG stocks?

FMCG stocks contributed to gains as Britannia Industries, Zydus Wellness, Mrs. Bectors Food Specialities, Tata Consumer Products, Nestle India and Dabur India were up to 2 per cent.

Other factors resulting in stock market rally

The revival of the monsoon after a deficient June spell, strong GST collections in June, manufacturing PMI index bouncing back to 58.3 in June, and expectation of healthy Q1 earnings also resulted in gains in the stock market.

Did global markets impact Indian stock market today?

Read more: Bansal Wire IPO opens: Should you subscribe to the ₹745 crore issue?

Yes, strong global cues uplifted the markets as S&P 500 closed at 5,509 , marking its first finish above the 5,500 threshold. The Nasdaq Composite jumped nearly one percent settling at record high of 18,028.

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

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