Latest UpdatesBusinessSensex Crosses 80,000 for the First Time, Nifty at Lifetime High

Sensex Crosses 80,000 for the First Time, Nifty at Lifetime High

In a historic milestone for India’s stock market, the S&P BSE Sensex crossed the 80,000 mark for the first time on Wednesday. At 9:15 a.m. IST, the Sensex was up by 0.72% at 80,013.77 points, while the NSE Nifty 50 rose by 0.7%, reaching a record high of 24,291.75 points. This surge was predominantly driven by the country’s leading private lender, HDFC Bank, which soared to a record high on optimistic projections of an increase in its weightage in a key global index.

Key Drivers of the Surge

HDFC Bank led the rally with a 3.5% increase at the opening bell, significantly boosting the Nifty 50. The potential increase in HDFC Bank’s weightage in Morgan Stanley’s MSCI indexes is a pivotal factor behind this rise. Abhilash Pagaria, Head of Nuvama Alternative and Quantitative Research, highlighted the impact of this development, stating, “After the solid bull run in markets, now HDFC Bank is set to give another boost.”

Foreign Institutional Investors and Market Inflows

Data released post-market hours on Tuesday indicated that foreign institutional investors’ shareholding in HDFC Bank dropped below 55% in the June quarter. This decrease raises the likelihood of an increased weightage in the MSCI indexes, potentially attracting inflows of $3.2 billion to $4 billion over six days. “A weight increase could bring in substantial inflows, further boosting the benchmarks as HDFC Bank is the heaviest weighted stock in both the Nifty and Sensex,” added Pagaria.

Sectoral Gains and Market Impact

All 13 major sectors logged gains, with the rise in HDFC Bank propelling banks, financials, and private banks higher by 1.3% to 1.5%. Analysts suggest that the inflows into HDFC Bank could further elevate the benchmarks, reinforcing the bank’s significant influence on the market indices.

Broader Market Sentiment

The market’s robust performance is a testament to the positive sentiment among investors and the strong fundamentals of key players like HDFC Bank. The sustained rally in the Sensex and Nifty reflects the confidence in the country’s economic prospects and the resilience of its financial institutions.

Summing Up

The crossing of the 80,000 mark by the Sensex marks a significant achievement for the Indian stock market, underscoring the growing investor confidence and the potential for further growth. As HDFC Bank continues to attract substantial inflows and bolster the benchmarks, the market is poised for continued positive momentum. This historic milestone not only highlights the strength of India’s financial sector but also sets the stage for future growth and investment opportunities.

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