New Delhi: The key equity benchmarks, Sensex and Nifty, on Monday extended gains for the second straight session, led by the surprise merger between HDFC and HDFC Bank which lift the mood of the market.
According to analysts, this will be the biggest merger in India’s corporate history.
The Sensex and Nifty surged over 2.5 per cent intra-day and hit highs of 60,845 and 18,114, respectively.
Both the indices later pared some gains. Sensex rose 1,335 points (2.25 per cent) to close at 60,612, while the broader NSE Nifty moved 383 points (2.17 per cent) higher to settle at 18,053. HDFC Bank shares jumped 10-per cent, while HDFC shares soared 9 per cent.
The merger of HDFC and HDFC Bank is expected to be completed by the second or third quarter of FY24. HDFC will acquire 41 per cent stake in HDFC Bank through the transformational merger.
The other top gainers are Kotak Bank, HUL, IndusInd Bank, Tata Steel, L&T, and Sun Pharma, 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.
Midcap and smallcap shares finished on a strong note as Nifty Midcap 100 index rose 1.63 per cent lower and smallcap gained 1.62 per cent.
All of the 15 sector gauges, compiled by NSE, ended in the green. Nifty Bank and Nifty Financial Services outperformed the index by rising as much as 4 per cent and 4.67 per cent, respectively. The Nifty IT index clocked the most tepid gains today, rising just 0.2 per cent.
On Friday, the Sensex surged 708 points (1.21 per cent) to close at 59,276 points. The Nifty climbed 205 points (1.18 per cent) to end the day at 17,670 points.
Elsewhere in Asia, bourses in Tokyo, Seoul, Hong Kong and Shanghai closed with healthy gains.
Stock exchanges in Europe were also trading significantly higher in mid-session deals.
Meanwhile, international oil benchmark Brent crude declined 1.05 per cent to $103.29 per barrel.
Foreign institutional investors (FIIs) were net buyers in the capital markets as they bought shares worth Rs 1,909.78 crore on Friday, as per exchange data.
ALSO READ | Mortgage Lender HDFC Announces Merger With HDFC Bank