The announcement of the merger of India’s largest mortgage lender HDFC Ltd with HDFC Bank, the largest private sector bank, led the markets to gain more than 2% with major indices listed sharply.
The S&P BSE Sensex rose 1.335. 05 points or 2.25%, at 60,611.74.
The gains were led by HDFC Bank which rose 9.97% followed by HDFC Ltd with a gain of 9.3%. Other top gainers included Kotak Mahindra Bank up 3.32%, HUL up 2.24% and Sun Pharma up 1.95%.
The NSE Nifty-50 index also rose 382.95 points, or 2.17%, to 18,053.40.
Vinod Nair, Head of Research, Geojit Financial Services, said, “The announcement of the HDFC Bank and HDFC merger led to a rally in the domestic market, which improved the sentiment in the equity market and financial sector.”
“The upcoming market focus will be on earnings report and RBI meeting this week. The fourth quarter results will have a good start, supported by the IT sector, while the RBI is expected to maintain rates with an accommodative policy,” he said.
Naveen Kulkarni, Chief Investment Officer, Axis Securities said, “We believe the next leg of the rally in the benchmark index will be driven by the BFSI space, as banking companies are likely to post solid Q4FY22 earnings, driven by a gradual recovery in credit growth. Inspired by.” said,
“Moreover, the trend of improvement in asset quality will continue for the quarter, bringing more confidence in the space,” he added.