Indian stock market surged to an all-time high on Wednesday, driven by index heavyweight HDFC Bank following a likely increase in its MSCI weightage.
Sensex jumped over 570 points to cross the 80,000 level for the first time ever. The 50-componenet Nifty was on the verge of breaking above the 24,300 mark.
From the Sensex pack, HDFC Bank, Kotak Mahindra and JSW Steel opened higher while Sun Pharma, TCS and Ultratech Cement opened in red.
On the sectoral front, Nifty Financial Services showed highest gains of 1.15%, led by PFC, REC and HDFC Bank.
Meanwhile, Nifty Bank, Auto, FMCG, Metals and private banks gained over 0.5%.
Expert Views
“The charts of Bank Nifty indicate that it may get support at 52,100, followed by 52,000 and 51,800. If the index advances further, 52,500 would be the initial key resistance, followed by 52,700 and 52,800.
The foreign institutional investors (FIIs) extended their selling for the second day, selling equities worth Rs 2,000 crore on July 2, while domestic institutional investors continued bought equities worth Rs 648 crore,” said Deven Mehata, Research Analyst at Choice Broking.
“Yesterday, Nifty dropped sharply after hitting an all-time high of 24,236.35 due to profit booking. FIIs were net sellers by ₹2000 crores, while DIIs bought ₹648 crores. Nifty is likely to trade between 23,500-24,500, with 24,500 as a major resistance level. Federal Reserve Chairman Powell’s remarks on inflation suggest a cautious market outlook. Key events include FOMC meeting minutes on Wednesday and the Nonfarm Payrolls report on Friday. We recommend buying Nifty at 24,124 with targets of 24,251/24,501 and Bank Nifty between 51,900-52,000 with targets of 52,501/53,181. Top stock pick: HDFC AMC (CMP 4096) with targets of 4,187/4,301,” Prashanth Tapse, Senior VP (Research), Mehta Equities said.
Global Markets
The Dow Jones Industrial Average rose 0.41% to 39,331.85, the S&P 500 gained 0.62% at 5,509.01 and the Nasdaq Composite advanced 0.84% to 18,028.76.
Asian stocks rose on Wednesday as comments from Fed Chair Jerome Powell reinforced expectations that U.S. rate cuts were not far off, while the yen remained pinned near levels last seen in 1986, keeping traders wary of Japanese intervention.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.26% higher, while Japan’s Nikkei rose 0.49%, stalking the record high touched in March.
FII/DII Tracker
The Foreign institutional investors (FIIs) sold equities worth Rs 2000.12 crore on July 2, while domestic institutional investors purchased equities worth Rs 648.25 crore on the same day.
Crude Oil
Crude oil prices fell on Tuesday as fears faded that Hurricane Beryl would disrupt supplies as the storm will avoid most oil fields as it barrels toward Jamaica.
Brent crude futures settled down 36 cents, or 0.42%, at $86.24 a barrel. U.S. West Texas Intermediate crude settled at $82.81 a barrel, down 57 cents or 0.68%.
Earlier on Tuesday, WTI rose $1 to $84.38 on fears Beryl might have a wider impact in offshore oil production areas in the U.S.-regulated northern Gulf of Mexico as U.S. demand for motor fuels is increasing.
Both benchmarks gained about 2% in the previous session.
Currency watch
The rupee depreciated 4 paise to settle at 83.48 against the US dollar on Tuesday, weighed down by a strong greenback in the overseas market and elevated global crude oil prices. Besides, a muted trend in domestic equities and foreign fund outflows dented investor sentiments.
Asian currencies were mostly lower, while the dollar inched up following Tuesday’s dip.
The rupee in the last three weeks had been roughly in an 83.35-83.60 band.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
