Pvt banks propel market to new highs, Sensex crosses 80,000 level

The India's benchmark indices, Nifty and Sensex, soared to new record highs on Wednesday, driven by a sharp upmove in bank and metal stocks, which boosted market sentiment.At close, the Sensex was up 545.35 points or 0.69 percent at 79,986.80, and the Nifty was up 162.65 points or 0.67 percent at 24,286.50. The Nifty Bank index also touched fresh high of 53,256.70 during the day and ended 1.77 percent higher at 53,089.25.
Among the sectoral indices, Bank Nifty emerged as the standout performer on Dalal Street, with HDFC Bank playing a pivotal role in driving the rally. This surge follows news that HDFC Bank, the country’s largest private sector lender, is expected to see an increase in its weightage in the MSCI index, potentially providing more room for foreign institutional investors (FIIs) to buy the stock.
Tata Consumer Products, Adani Ports, Kotak Mahindra Bank, Axis Bank and HDFC Bank were the biggest gainers on the Nifty, while losers included TCS, Titan Company, Reliance Industries, Tata Motors and Hindalco Industries.
On the sectoral front, except media, all other sectoral indices ended in the green with power, capital goods, bank and metal up 1-2 percent.The BSE midcap and smallcap indices rose nearly 1 percent each.
Rupee Close: 
On 3 July'24,the Indian rupee depreciated 4 paise to settle at 83.52  against the U.S. dollar on Wednesday, weighed down by elevated crude oil prices.Forex traders said the Indian rupee depreciated on strength in crude oil prices, which touched a two-week high on Tuesday. However, a firm tone in domestic markets and favourable macroeconomic data cushioned the downside.
Trading Guide: 
Market experts believe that a rally in banking stocks coupled with drawing strength from robust global sentiments and a favourable undertone have been the key triggers in today's session.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services reportedly stated,the focus of market activity today will be HDFC Bank which will continue its upward move factoring in the news of potentially increasing the weightage of the stock in the MSCI Index. The delivery based buying in the stock witnessed in the last many days has the potential to continue for a few more days pushing the stock further up and imparting resilience to it.
As the weightage of HDFC Bank in Nifty increases there will be more delivery based buying by ETFs and also active funds. There can be a marginal negative impact on other high weightage stocks in the Nifty like RIL, TCS, Infosys and ICICI Bank.
Market experts have recommended buying these five buy-or-sell stocks — SBI Life, Indigo, DMart, Bombay Dyeing and Craftsman.

(Writer is a Finance Research Analyst, based in Gandhinagar, Gujarat)