New Delhi | Jagran Business Desk: The 30-share BSE Sensex on Monday surged by 1,335.05 points or 2.25 per cent to close at 60,611.74 after HDFC twins – HDFC Bank and HDFC Limited – announced their merger. Likewise, the 50 NSE Nifty closed at 18,053.40, rising by 382.95 points or 2.17 per cent.
“This is a merger of equals. We believe that the housing finance business is poised to grow in leaps and bounds due to the implementation of RERA, infrastructure status to the housing sector, government initiatives like affordable housing for all, amongst others,” Money Control quoted HDFC Limited chairman Deepak Parekh as saying.
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Earlier, the Sensex had climbed by 609.03 points or 1.03 per cent to open at 59,885.72, while Nifty started the session at 17,838.15, rising by 167.70 points or 0.95 per cent.
As expected, HDFC Bank and HDFC were the top gainers on the Bombay Stock Exchange (BSE), rising by 9.81 per cent and 9.15 per cent respectively. Besides, Kotak Mahindra Bank, Hindustan Unilever, IndusInd Bank, Tata Steel, Larsen and Toubro, Sun Pharma, Nestle India, HCL Tech, Axis Bank, and ICICI Bank were the top gainers.
Only Titan and Infosys were the two stocks at Dalal Street to end in red.
Investors are buoyed by the merger of HDFC twins, feel market experts. However, Dr VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, believes that the market will remain volatile due to mixed trends in the international market.
He also believes that India’s gross domestic product (GDP) growth “will be lower and inflation higher” for the financial year 2022-23 than projected before the Russia-Ukraine war.
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“Segments not impacted by the growth slowdown and higher inflation like IT, telecom, oil and gas producers and attractively valued financials are likely to find favour with investors in the near term,” he said.
“The market will be keenly watching the Q4 results and guidance of IT companies expected starting next week. FMCG, cement and autos are likely to experience marging pressure from higher input costs,” he noted.
