Benchmark indices Nifty and Sensex scaled to fresh record highs on July 03 as global cues uplifted the sentiment. The Sensex crossed 80,000 for the first time as banking and FMCG stocks contributed to the rally.
The S&P 500 closed at 5,509, marking its first finish above the 5,500 threshold. The Nasdaq Composite jumped nearly one percent, settling at 18,028, another record high.
Domestically, at about 9:20 am, the Sensex was up 0.61 percent at 79,923 and the Nifty inched higher by 0.55 percent at 24,257. About 2,086 shares advanced, 699 shares declined, and 100 shares unchanged.
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HDFC Bank, the country's largest private bank, also made headlines weightage in the MSCI index is expected to rise as FIIs have greater room to buy stock, potentially helping the index rise. This led to a rally in the Bank Nifty, also hitting a record high of 53,201.50.
"Irrespective of blips, the market sentiment remains largely intact as large caps are showing strength because of support from foreign institutional investors (FIIs) and some support from valuations and that's what the market is detecting," Aishvarya Dadheech, founder and CIO of Fident Asset Management, told Moneycontrol.
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FIIs' long-short ratio is now above 80 percent which indicates positivity and a strong buying interest from them in the heavyweights would keep the positivity intact in the index.
The broader market, which includes midcap and smallcap indices, underperformed the headline indices after both were trading 0.3 and 0.5 percent higher, respectively. "The two indices are acting very weird as their performance has been erratic and that's likely to continue as there's some nervousness regarding budget expectations, " Dadheech said.
"Nifty can find support at 24,100 followed by 24,000 and 23,950. On the higher side, 24,250 can be an immediate resistance, followed by 24,300 and 24,400," Deven Mehata of Choice Broking said. "The charts of Bank Nifty indicate that it may get support at 52,100, followed by 52,000 and 51,800," he added.
HDFC Bank, Kotak Mahindra Bank, HDFC Life, Britannia Industries and Tata Consumer were among major gainers on the Nifty, while losers were Sun Pharma, TCS, UltraTech Cement, Tech Mahindra and Infosys.
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