Indian headline indices reached all-time highs on Wednesday, driven by banks and financial stocks, particularly HDFC Bank. Investors were optimistic about the stock’s potential increase in weightage in the MSCI index during the August review.
The S&P BSE Sensex, consisting of 30 stocks, hit a record high of 80,074.3 before closing at 79,987, up by 545 points or 0.69%. The broader Nifty also reached a peak of 24,309.15 and ended the day at 24,287, gaining 163 points or 0.67%.
The Nifty Bank index also achieved a new lifetime high of 53,256.70, closing at 53,089.25, up by 921.15 points or 1.77%.
Vinod Nair, Head of Research at Geojit Financial Services, noted a broad-based rally in the Indian market led by largecaps, especially in the financial sector. With a significant drop in Indian banks’ Gross Non-Performing Assets (GNPAs) to a 12-year low, the sector is expected to perform well in the near future.
Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, highlighted the strong uptrend in the index with higher-high and higher-low formations on the daily chart. He suggested that the immediate support level is at 52,500, and any dip towards this level could present a good opportunity to initiate new long positions.
In terms of top gainers and losers, Tata Consumer Products, Adani Ports and Special Economic Zone, Kotak Mahindra Bank, HDFC Bank, and Axis Bank were among the top performers, while Tata Consultancy Services (TCS), Titan Company, Reliance Industries (RIL), Tata Motors, and Hindalco Industries experienced losses.
Nifty Media was the only sectoral index to end in the red, with a decline of 0.4%. On the other hand, Nifty Bank and Nifty Private Bank saw significant gains of nearly 2% each. Nifty FMCG, Nifty Metal, and Nifty Pharma also closed with gains of up to 2%.