Stock Market Today: Sensex Gains 545 Points, Nifty Nears 24,300; Metal and Banks

July 3, 2024

New Delhi, India

Indian equity indices ended higher on July 3, with the Nifty climbing above 24,250, driven by strong buying across most sectors except media. The Sensex rose by 545.35 points, or 0.69%, to close at 79,986.80, and the Nifty increased by 162.70 points, or 0.67%, to end at 24,286.50.

Market Highlights

Record Highs:

• The BSE Sensex hit an all-time intraday high of 80,074 before closing at 79,987, marking a gain of 545 points or 0.69%.
• The NSE Nifty50 reached a new record high of 24,307.25, finishing the session at 24,287, up 163 points or 0.67%.

Top Gainers:

• Major gainers on the Sensex included HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, and SBI.
• On the NSE, notable gainers were Kotak Bank, Axis Bank, HDFC Bank, Adani Ports, SBI, IndusInd Bank, Power Grid, JSW Steel, HUL, Bajaj Finance, and ICICI Bank, all rising between 1% and 2.4%.

Sector Performance:

• The Nifty Private Bank index gained 2%, Nifty Bank rose by 1.77%, and Nifty PSU Bank increased by 1%.
• The only sectoral laggard was the Nifty Media index, which fell by 0.39%.

Broader Market Performance

The BSE MidCap and SmallCap indices both saw gains of 0.86%, indicating strong performance across broader markets.

Key Drivers and Insights

• HDFC Bank Surge: HDFC Bank stocks surged 2.2%, driving gains in the banking and financial sectors. This rally was fueled by expectations of increased weightage in the MSCI Emerging Markets index, potentially attracting substantial inflows between $3.2 billion and $4 billion.
• Sector Rotation: Analysts highlighted the ongoing sector rotation supporting steady index growth, with potential for Nifty to test 24,500.
• Broad Market Momentum: Small- and mid-cap indices also saw notable gains, with Bharat Heavy Electricals rising 4.76% on securing major contracts, and power financiers REC and Power Finance Corporation both surging over 4%.

Conclusion

The Indian stock market demonstrated robust strength on July 3, with key indices hitting record highs and broad-based sectoral gains, particularly in the banking and metal sectors. HDFC Bank played a significant role in driving market momentum, and analysts remain optimistic about continued growth and foreign inflows.