WEB DESK
The unexpected merger announcement of HDFC and HDFC Bank catapulted the benchmark indices beyond key psychological levels on Monday as hefty buying in the two index heavyweights lifted market mood.
The S&P BSE Sensex and the NSE Nifty50 surged over 2.5 per cent intra-day and hit highs of 60,845 and 18,114, respectively. The indices, however, pared gains marginally to end at 60,612 and 18,053, respectively. The 30-pack soared 1,335 points and the 50-pack index jumped 383 points.
The gains were courtesy a 10-per cent rally in HDFC Bank and 9-per cent in HDFC. Shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company. The transaction is expected to be completed in 18 months, subject to regulatory approvals.
Besides, Kotak Bank, HUL, IndusInd Bank, Tata Steel, L&T, and Sun Pharma were the other top gainers, up between 2 per cent and 3 per cent. On the flipside, Infosys and Titan Company were the only losers, down up to 1 per cent.
In the broader markets, the BSE MidCap and SmallCap indices 1.34 per cent and 1.7 per cent, respectively. In comparison, the headline indices ended 2.25 per cent up.
Among sectors, the Nifty Financial Servoces index zoomed 4.5 per cent, followed by the Nifty Bank index, up 4 per cent. The Nifty IT index clocked the most tepid gains today, rising just 0.2 per cent.
Indian markets opened on a positive note following positive Asian market peers and aided by merger announcement between India’s largest private bank and largest private mortgage lender companies HDFC Bank and HDFC Ltd. During the afternoon session markets maintained its positive momentum. Sentiments were also upbeat as India’s merchandise exports spurt to a record high of $418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals.