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:
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?
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.
