Indian headline indices jumped to fresh record highs propelled by bank stocks with the lion’s share being accounted for by HDFC Bank. It was strongly supported by ICICI Bank and Axis Bank, who were among the other major index contributors.

The 30-stock S&P BSE Sensex scaled a new peak of 78,164.71, gaining 824 points or 0.87% while the broader Nifty achieved a lifetime high of 23,754.15 gaining 216 points or 0.91%. Sensex ended at 78,053, up by 712 points or 0.92% while Nifty closed at 23,721, up by 183 points or 0.78%.

Banking gauge Nifty Bank also hit its lifetime high of 52,669.30, taking a 2% or 965 points intraday lead.

Top Gainers and Losers

The top gainers from the Nifty50 index were Shriram Finance, Axis Bank, HDFC Bank, ICICI Bank and Tech Mahindra around this time while the top losers from the pack were Bharat Petroleum Corporation Limited (BPCL), Eicher Motors, Tata Steel, Asian Paints and Power Grid.

Notwithstanding the gains, the market breadth was evenly distributed in favour of gainers and losers. In the 50-stock index, 25 stocks were trading in the green, 24 in the red while one counter remained unchanged.Of the 16 sectoral indices on the NSE, 8 ended in the green. Nifty Financial Services, Nifty IT, Nifty PSU Bank were among the winners. From the losing side, Nifty Auto, Nifty FMCG, realty and Nifty Metal were under the spotlight.The action was mixed in the broader markets with the Nifty Midcap 100 trading down 0.45% at 55,324.45 while the Nifty Smallcap 100 gained by 0.21% and traded at 18,255.10 around this time.

Expert Take

Commenting on the day’s action, Vinod Nair, Head of Research at Geojit Financial Services said the domestic market experienced a financial sector-driven rally on Tuesday, primarily led by private banks, with the Nifty Bank reaching a new high and the Sensex surpassing 78,000. However, profit booking was evident in sectors such as realty, power, metals, and midcaps, he added.

“Amidst moderate consolidations and sector rotations, the market is moving upwards due to expectations from the upcoming Budget. Additionally, the progress of the monsoon is being watched for insights into the consumption outlook,” he said.

Global Markets

Most major Asian indices closed in the green with Japan’s Nikkei 225 closing up 0.95% while Hong Kong’s Hang Seng gaining 0.25%. Singapore’s FTSE Straits Times Index settled 0.37% higher. Meanwhile China’s Shanghai Composite ended with declines of 0.44%.

Meanwhile, cues from European markets were not positive. UK’s FTSE 100, Germany’s DAX, French CAC 40 Index and Spain’s IBEX 35 were among top losers falling up to 1.10%.

Rupee impact

The Indian rupee ended marginally higher on Tuesday on expectations of foreign inflows into domestic debt that will be included in a global index later this week. The rupee settled at 83.4325 against the US dollar from its previous close at 83.4600. Gains in the rupee were, however, limited due to month-end dollar demand from importers, two traders said.

Indian bonds will be included in the widely tracked JP Morgan emerging market index on June 28, spurring inflows of about $2 billion.

The $2-billion single-day inflow estimate by bankers trails only the record-high $2.7 billion poured into Indian bonds on August 20, 2014.

“Market participants are optimistic about the debt market inflows from the global bond inclusion,” said Dilip Parmar, a foreign exchange research analyst at HDFC Securities, adding the inflows could initially probably be lower than what the market expects.

Crude Impact

Crude oil prices were trading lower on Tuesday with US WTI oil contracts trading at $81.31, down by $0.32 or 0.39% while Brent oil futures were hovering near $85.65, down by $45 or 0.66%.

On the MCX, the July Crude Oil futures were trading at Rs 6,777 per BBL, up by Rs 28 or 0.39%.

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