Stock Market: Sensex Rises 446 Points, Nifty Closes Above 18,800 On HDFC Merger, Banks Lead

Stock update: On the 30-share Sensex platform, SBI, HDFC, Axis Bank, HDFC Bank, Airtel, Kotak Bank, ICICI Bank were among the main gainers

The two key equity benchmarks, Sensex and Nifty, on Tuesday closed near their day’s high following news of HDFC-HDFC Bank merger’s effective date boosted buying sentiment among buyers. Deepak Parekh, chairman of HDFC said that the merger shall be effective from July 01 onwards. He said that both the firms will have separate board meetings on June 30, and shares of HDFC shall cease trading from July 13, 2023. After the announcement, shares of HDFC and HDFC Bank rallied over 2 per cent at the high point of the day, and eventually settled with gains of around 1.5 per cent each.

The S&P BSE Sensex rallied to a high of 63,468, and ended 446 points higher at 63,416. On the other hand, the NSE Nifty reclaimed the 18,800-mark, and ended with a gain of 126 points at 18,817.

On the 30-share Sensex platform, SBI, HDFC, Axis Bank, HDFC Bank, Airtel, Kotak Bank, ICICI Bank were among the main gainers. On the flip side, only Maruti, ITC, and HUL emerged losers. Among individual stocks, shares of InterGlobe Aviation (IndiGo) hit a fresh all-time high on gaining over 3 per cent today. In doing so, its market capitalisation came within striking distance of hitting the Rs 1-trillion mark.

In the broader market, the BSE Midcap index advanced 0.4 per cent, while the Smallcap index added 0.6 per cent.

India VIX also dropped 5.8 per cent on Tuesday.

The overall breadth too was positive, with more than 2,000 stocks advancing against 1,450-odd declining shares on the BSE.

Sectorally, the Nifty Financial Services index also hit its all-time high level. Banking and realty stocks were also in demand. The Nifty Bank and PSU Bank indices closed over 1 per cent higher, while the Nifty FMCG index lost 0.07 per cent.

In the previous session on Monday, the S&P BSE Sensex ended on a flat note at 62,970, down 9 points, while the NSE Nifty settled 26 points higher at 18,691.

In Asian markets, Shanghai and Hong Kong settled in the green while Seoul and Tokyo ended lower. Equity markets in Europe were trading on a mixed note. The US markets ended in the negative terrain on Monday.

Global oil benchmark Brent crude declined 1.12 per cent to $73.35 a barrel.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 409.43 crore on Monday, according to exchange data.