Sensex surges 1,335 points to reclaim 60,000-mark; Nifty settles at 18,053: What led to market rally - Times of India

Sensex surges 1,335 points to reclaim 60,000-mark; Nifty settles at 18,053: What led to market rally – Times of India

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NEW DELHI: Domestic benchmark indices surged to 2 and half month high on Monday by gains in private lender HDFC Bank and mortgage lender Housing Development Finance Corp after the companies decided to merge their operations.
The 30-share BSE sensex jumped 1,335 points or 2.25 per cent to close at 60,612; while the broader NSE Nifty settled 383 points or 2.17 per cent higher at 18,053.

Top gainers in the sensex pack included HDFC twins, Kotak Bank, HUL, L&T and IndusInd Bank rising as much as 9.97 per cent.
Infosys and Titan were the only shares that finished in red.
On the NSE platform too, all sub-indices finished in green with Nifty Financial Services, Bank and Private Bank gaining as much as 4.64 per cent.

In addition, the BSE sensex reclaimed 60,000-mark by closing at 60,612 after a gap of nearly 2 and half months. It had closed at 60,099 on January 19.
Here are the top reasons for today’s gains:
* HDFC-HDFC Bank merger
In the biggest merger in corporate history, India’s largest housing finance company HDFC Ltd will merge with country’s largest private lender HDFC Bank to create a banking behemoth.
Once effective, HDFC Bank will be 100 per cent owned by public shareholders and existing shareholders of HDFC will own 41 per cent of the bank, according to stock exchange filings by the firms.

Every HDFC shareholder will get 42 shares of HDFC Bank for 25 shares held.
The merger will make HDFC the 2nd largest company in India with a market capitalisation of nearly Rs 13 lakh crore.
After the announcement, shares of both HDFC and HDFC Bank skyrocketed. Shares of HDFC Bank closed 9.97 per cent higher at Rs 1,656.45 on the BSE, while that of HDFC finished 9.3 per cent up at Rs 2,678.9.
The market movement is largely due to the “unexpected announcement” of the merger, Saurabh Jain, assistant vice president at SMC Securities told news agency Reuters.
“This is a very positive news in the sense the foreign institutional investors holding will increase after the merger,” Jain said.
* Broad based rally across sectors
BSE midcap index surged 1.27 per cent, while small caps index jumped 1.68 per cent.
All sectors finished in green, with banking and financial stocks leading the market gains after the HDFC-HDFC Bank merger plan.
Both HDFC and HDFC Bank were major laggards last year, gaining 1.1 per cent and 3 per cent respectively, compared with a 13.5 per cent rise in the Nifty bank index.
Shares of Adani Ports and Special Economic Zone rose 4.2 per cent after it reported strong March business operations.
Sugar stocks gained up to 4.5 per cent on export deals.
Shares of commercial vehicles maker SML Isuzu soared 20 per cent after a strong March sales update and a hike in vehicle prices.
Besides, investors will now be closely watching the monetary policy decision by the Reserve Bank of India (RBI) on Friday.
* Global markets mixed
Asian markets mostly rose on Monday as another strong jobs report provided some reassurance that the recovery in the US economy remained on track, though it also solidified expectations for more aggressive Federal Reserve interest rate hikes.
Wall Street benchmarks rose Friday after the jobs report eased worries over recovery from the pandemic, though it also reinforced the likelihood of more interest rate hikes.
European stocks were mostly lower, while Paris, Frankfurt, Tokyo and Hong Kong rose. London was little changed. Shanghai markets were closed for a holiday.
Oil prices advanced while US futures slipped.
How sensex reclaimed 60,000-mark
After being under pressure for past few months, the stock markets seem to be recovering with the BSE sensex reclaiming 60,000-mark.
In the past few months, markets have witnessed many headwinds starting with the third wave of Covid, inflation pressures and a raging war Russia and Ukraine that led to geopolitical crisis.
The sensex scaled to an all-time intra-day high of 62,245 on October 18. Since then, both the benchmark indices have been under pressure.

Markets have seen many ups and downs since then, but remained below 60,000 on most days.
The ongoing war between Russia and Ukraine led sensex to witness one of it worst crashes in the last 2 years. Sensex fell to a low of 52,843 in the beginning of March.
However, markets have staged a gradual recovery since as oil prices cooled and expectation of some solution to the Russia-Ukraine conflict.
In spite of global markets reeling under the pressure of the ongoing war — which has stretched for over a month now — both sensex and Nifty have shown good performance during March.
While the BSE index jumped 4.13 per cent, the broader NSE Nifty too advanced over 5 per cent this month, beating their global peers.
This helped the BSE sensex reclaim the 60,600-mark in today’s trade, while the Nifty soared past 18,000-mark.
Investors gain Rs 4.52 lakh crore
The market capitalisation of BSE-listed companies, also an indicator of notional wealth of investors, surged to Rs 272.41 lakh crore at end of today’s trade.
This marks a gain of over Rs 4.52 lakh crore compared to the market valuation of Rs 267.88 lakh crore at the close of trading on the BSE on April 1.
(With inputs from agencies)



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