The benchmarks Sensex, and Nifty saw a stellar opening on Wednesday, tracking gains from global markets.
Indian benchmark indices soared to new highs at open on Wednesday, with Sensex breaching the 80k mark for the first time and reaching its lifetime high at 80,039 points, while the Nifty50 index surged 169 points, recording its fresh high at 24,292.
The index heavyweight HDFC Bank was the top gainer on Sensex, recording its new high at Rs 1,791.90. The gainer list on Sensex was followed by Kotak Bank, Bajaj Finance, Bajaj Finserv and M&M, while Tech Mahindra, TCS, Sun Pharma, Infosys and Bharti Airtel led the losses.
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Market View by Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
The focus of market activity today will be HDFC Bank which will continue its upward move factoring in the news of potentially increasing the weightage of the stock in the MSCI Index. The delivery based buying in the stock witnessed in the last many days has the potential to continue for a few more days pushing the stock further up and imparting resilience to it.
As the weightage of HDFC Bank in Nifty increases there will be more delivery based buying by ETFs and also active funds. There can be a marginal negative impact on other high weightage stocks in the Nifty like RIL, TCS, Infosys and ICICI Bank.
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Global Cues
Asia-Pacific markets staged a strong show on Wednesday morning following remarks by US Federal Reserve Chair Jerome Powell indicating progress in controlling inflation. The investors are also eying release of crucial data later in the day, including June business activity figures from India and China.
Japan’s Nikkei 225 climbed 0.69 per cent, while the broader Topix index was trading flat, down marginally by 0.06 per cent.
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South Korea’s Kospi edged up by 0.14 per cent, while the Kosdaq, which focuses on small-cap stocks, gained 0.25 per cent. Australia’s S&P/ASX 200 soared by 0.13 per cent.
In the US overnight, the Dow Jones Industrial Average rose by 0.41 per cent, the S&P 500 advanced by 0.62 per cent, and the Nasdaq Composite surged by 0.84 per cent. Both the Nasdaq and the S&P 500 achieved record high closing levels.
