Due to HDFC Bank’s strong performance and the expectation that its weight in a significant global index would likely increase, the Indian stock market opened on July 3 at record highs. As of 9:15 a.m., the BSE Sensex gained 0.72% to 80,013.77 points, while the NSE Nifty 50 was up 0.7% at 24,291.75 points. The 30-stock Sensex has now surpassed 80,000 for the first time.
Why has HDFC Bank’s stock increased today?
With a 3.5% opening gain, HDFC Bank led the Nifty 50 higher. This occurs as statistics revealed that the percentage of shares held by foreign institutional investors in HDFC Bank fell below 55% during the June quarter. This suggested that the MSCI indexes from global index provider Morgan Stanley may see a likely weight hike.
According to Reuters, head of Nuvama Alternative and Quantitative Research Abhilash Pagaria stated, “After the solid bull run in markets, now HDFC Bank is set to give another boost.”
“A weight increase could bring in $3.2 billion–$4 billion inflows over six days,” he stated.
Every one of the stock market’s thirteen major sectors had advanced. The increase in HDFC Bank drove up private, financial, and bank shares by 1.3% to 1.5%.
Money watch
Due in part to the strong US dollar and rising crude oil prices, the rupee lost 5 paise to 83.53 against the US dollar in early trading. The rupee fell 5 paise from its previous closing level at the interbank foreign exchange market, where it opened at 83.51 and lost more ground to trade at 83.53 against the US dollar in early trades.