Sensex Today Rallies 545 Points; Nifty Tops 24,250 Mark

After opening the day on a positive note, Indian share markets continued the momentum as the session progressed and ended on firm footing.

Indian benchmark indices soared to new highs in Wednesday's intra-day deals, with Sensex breaching the 80,000 mark for the first time and reaching its lifetime high at 80,074 points, while the Nifty50 index surged 184 points, recording its fresh high at 24,307.

At the closing bell, the BSE Sensex stood higher by 545 points (up 0.7%).

Meanwhile, the NSE Nifty closed higher by 162 points (up 0.7%).

Adani Ports, Axis Bank, and HDFC Bank were among the top gainers today.

TCS, Titan, and Hindalco on the other hand, were among the top losers today.

The GIFT Nifty was trading at 24,387 up by 143 points, at the time of writing.

The BSE MidCap index ended and the BSE SmallCap index ended 0.9% higher.

Sectoral indices are trading positively with stocks in the power sector, banking sector, and IT sector witnessing the most buying.

Shares of Hitachi Energy, Trent, and CAMS hit their respective 52-week highs today.

The rupee is trading at 83.53 against the US$.

Gold prices for the latest contract on MCX are trading 0.9% higher at Rs 72,159 per 10 grams.

Meanwhile, silver prices were trading 1.7% higher at Rs 91,400 per 1 kg.

Here are three reasons why Indian Markets are rising today

#1 Index Heavyweights Rally

The main reason behind the sharp rise on Dalal Street was a nearly 3.5% jump in HDFC Bank shares. The gainer list on Sensex was followed by Kotak Bank, Bajaj Finance, Bajaj Finserv and M&M.

#2 Banking Stocks Rally

Aside from HDFC Bank, other banks such as Axis Bank, ICICI Bank, and Kotak Bank also supported the frontline indices, driving them to higher levels. The strong rally in banking stocks drives the Nifty Bank index to a new all-time high of 53,201.

#3 Monsoon Revival Rally

FMCG stocks also contributed to gains as Britannia Industries, Zydus Wellness, Mrs. Bectors Food Specialities, Tata Consumer Products, Nestle India and Dabur India rose up to 2%.

The revival of the monsoon after a deficient June spell is good news for the FMCG market, especially in rural areas. Several FMCG firms are positive on the government's initiatives to drive rural income and expect positive steps in the upcoming budget

Why IREDA Share Price is Rising

In news from the energy sector, shares of IREDA jumped nearly 6% on 3 July to touch an all-time high of Rs 218.8.

In the previous session, as many as 50 lakh shares of IREDA changed hands in a block deal. The number of shares that changed hands amounted to 0.2% of the total equity. The total transaction value of the block deal was said to be Rs 1 bn.

Recently, IREDA CMD Pradip Kumar Das said that the company has requested the government to allow it to carry out a Follow-on Public Offer (FPO) as it will need further equity infusion considering the pace at which it is growing.

Further, as one of the top renewable energy companies in India, reported significant growth in the first quarter of FY25.

Loan sanctions surged to Rs 91.4 bn, nearly five times the Rs 18.9 bn sanctioned in the same quarter last year.

Loan disbursements also saw a remarkable increase of 67.6%, reaching Rs 53.2 bn, compared to Rs 31.7 bn in the corresponding quarter of the previous year.

The company's outstanding loan book at the end of June stood at Rs 631.5 bn, marking a 33.8% rise from Rs 472.1 bn a year ago. This robust performance highlights IREDA's strong financial health and growth trajectory.

These impressive results in loan sanctions, disbursements, and overall loan book size underscore IREDA's ability to scale its operations effectively.

IREDA Share Price - 1 Year Performance

Why did HDFC Bank Hit Record High

Moving on to news from the banking sector, shares of HDFC Bank surged 3.5% to hit an all-time high of Rs 1,791 per share on 3 July following a 4% rally of its American Depository Receipts (ADRs) overnight to US$ 66.9 apiece post the release of June shareholding data.

With foreign investors' stake falling below 55% in the June quarter, analysts anticipate a potential doubling of the bank's weighting in the MSCI Standard index during the upcoming reshuffle.

Over the past three months, the stock of India's largest private sector lender has climbed more than 16%, outperforming the benchmark Nifty 50 index, which rose by 7%. Despite this, HDFC Bank has underperformed so far this year, with a modest increase of only 1.7%.

Currently, HDFC Bank ranks fourth in the MSCI India Index, with a weight of 3.9%. India's weight in the MSCI Emerging Markets (EM) Index stands at 19.2%, which is expected to surpass 20% in the August rebalance.

More By This Author:

Sensex Today Hits Record High, Crosses 80,000 Mark
Sensex Today Ends 35 Points Lower; Nifty Below 24,150
Sensex Today Trades Lower; Nifty Below 24,100

Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

How did you like this article? Let us know so we can better customize your reading experience.