Indian stock markets surged today, driven by strong gains in index majors HDFC Bank and HDFC amid mixed trends in Asian markets. The Sensex skyrocketed over 1500 points when it touched 60,845 at day’s high while the broader Nifty was firm above 18,050. Shares of HDFC climbed 15% while the HDFC Bank stock went up 13% after India’s largest private lender HDFC Bank will merge with the country’s largest housing finance company HDFC Ltd to create a financial services conglomerate, sending their shares sharply higher.
Here are 10 updates from stock markets
Analysts say that the combined entity of HDFC and HDFC Bank will have the same cost structure as other banks, which will allow them to compete better with their peers.
Among other financial stocks, Bajaj Finance and Kotak Bank were up between 1% and 2%. On the other hand, some selling pressure was seen in Reliance Industries and Infosys.
As part of the deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41% of HDFC Bank.
Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company.
Apart from the RBI policy announcement, scheduled for April 8, the developments linked to the Russia-Ukraine war, crude oil movement and foreign fund flows are expected to influence investor sentiments.
“Segments not impacted by the growth slowdown and higher inflation like IT, telecom, oil and gas producers and attractively valued financials are likely to find favour with investors in the near term,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The market will be keenly watching the Q4 results and guidance of IT companies expected starting next week. FMCG, cement and autos are likely to experience margin pressure from higher input costs.”
Foreign portfolio investors pumped in little over ₹1,909 crore in equities on Friday.
Shares in Asia were mostly higher Monday as gains carried over from a strong finish last week on Wall Street.
Analysts said a healthy report Friday on the U.S. jobs market eased worries over the recovery from the pandemic, though it also reinforced the likelihood of more interest rate hikes. (With Agency Inputs|)
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