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Sensex zooms 1335 points after HDFC duo merger deal
.png "Sensex zooms 1335 points after HDFC duo merger deal")
Mumbai: The Indian equities markets' key indices, Sensex and Nifty, surged by more than 2 percent on Monday after HDFC and HDFC Bank announced a surprise merger deal.
The 30 stock S&P BSE Sensex surged 1335.05 points or 2.25 percent to close at 60,611.74 points against its previous session's close at 59,276.69 points. Earlier, the Sensex opened in the positive at 59,764.13 points at rose sharply soon after the HDFC merger deal was made public. The Sensex surged to a high of 60,845.10 points in the intra-day.
The broader Nifty 50 of the National Stock Exchange surged 382.95 points or 2.17 percent to 18,053.40 points.
The stock markets' rally was led by HDFC and HDFC Bank.
HDFC Bank surged 9.97 percent to Rs 1656.45. The scrip earlier soared to a high of Rs 1721.85 in the morning trade. The market capitalization of HDFC Bank soared past Rs 9 lakh crore.
The share price of HDFC Ltd surged 9.30 percent to Rs 2678.90. HDFC soared to a high of Rs 2855.35 in the intra-day. With this surge, the market capitalization of HDFC soared past Rs 5 lakh crore.
HDFC and HDFC Bank stocks rallied after the duo announced merger deals. The Board of Directors of HDFC Ltd and HDFC Bank at a meeting held on Monday morning approved a proposal for a merger of the two leading financial institutions.
As per the terms of the deal, shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 percent of HDFC Bank. Post the merger, HDFC Bank will be 100 percent owned by public shareholders and existing shareholders of HDFC Limited will own 41 percent of HDFC Bank.
BSE Bank index surged by over 3 percent post the HDFC duo merger announcement. S&P BSE Private Banks index soared 4.45 percent to 14,662.78 points.
While HDFC Bank led the rally, there was strong buying support in other banking stocks also. Kotak Bank surged 3.32 percent to Rs 1835.65. IndusInd Bank soared 1.94 percent to Rs 987.50. ICICI Bank jumped 1.35 percent to Rs 746.45. Axis Bank gained 1.19 percent to close at Rs 783.65.
There was across-the-board buying support. Only two of the 30 scrips that are part of the Sensex closed in the red. Infosys fell 1.05 per cent to Rs 1882.45. Titan closed 0.20 percent down at Rs 2516.50. (ANI)
