The Indian stock markets soared to new heights on July 3, with benchmark indices Nifty and Sensex reaching fresh record highs, driven by positive global cues.
The Sensex crossed the 80,000 mark for the first time, while banking and FMCG stocks contributed significantly to the rally.
On the global front, the S&P 500 closed at 5,509, marking its first finish above the 5,500 threshold. The Nasdaq Composite also surged nearly one percent, settling at 18,028, setting another record high.
Domestically, as of 9:20 am, the Sensex was up 0.61 percent at 79,923, and the Nifty inched higher by 0.55 percent at 24,257. The market breadth was positive, with about 2,086 shares advancing, 699 shares declining, and 100 shares remaining unchanged.
HDFC Bank, the country's largest private bank, was a key highlight. The bank's increased weightage in the MSCI index is expected to rise as foreign institutional investors (FIIs) have greater room to buy stock. This potential for increased investment led to a rally in the Bank Nifty, which also hit a 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," said Aishvarya Dadheech, founder and CIO of Fident Asset Management. "FIIs' long-short ratio is now above 80 percent, indicating positivity and a strong buying interest from them in the heavyweights, which would keep the positivity intact in the index."
However, the broader market, which includes midcap and smallcap indices, underperformed the headline indices, trading 0.3 and 0.5 percent 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.
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