sensex: Market Watch: What the HDFC merger means for the financial sector

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I’m Bhaskar Dutta and here are the top headlines of the hour.

-Sugar export could reach 85 lakh tons this year
-India’s imports of palm oil soar in March
-Indian labor market shows strong recovery
5G auction to be held as scheduled, government says
-The purchasing managers’ index for the manufacturing sector falls to 54 in March
– Sri Lankan President dismisses Finance Minister

Let’s take a quick look at what happened on Dalal Street today.

Bulls dominated domestic stock markets on Monday as the announcement of a merger between lending giants HDFC and HDFC Bank paved the way for the creation of a new financial giant.

The announcement sent the HDFC twins’ stock prices up about 10 percent, lifting the combined companies’ market capitalization above that of TCS and behind only that of Reliance Industries.

Given the huge weights the HDFC twins have in the Sensex and Nifty50, the headline indices broke through to crucial levels with the rally wealthiering investors by a whopping Rs.4.6 crore.

BSE barometer Sensex surged above the 60,500 mark, adding a massive 1,335 points for the day. The index has gained nearly 2,700 points over the past five trading days.

Its broader competitor, the Nifty50, closed above the 18,000 mark and gained 383 points for the day. During the day, the index had risen above the 18,100 mark.

Broader markets underperformed the leading indices, with the BSE midcap and smallcap indices gaining 1.3 and 1.7 percent, respectively. The fear gauge India VIX fell 3 percent to end just below the 18 mark.

In the 30-pack BSE Sensex, 28 stocks rose. HDFC Bank and HDFC led the gainers, up 10 percent and 9 percent, respectively. Kotak Mahindra Bank and HUL were up 3 percent and 2 percent, respectively, while L&T was up 2 percent.

IndusInd Bank and Sun Pharma rose 1.9 and 1.8 percent, respectively. Infosys and Titan were the only losers on the day, falling 1 percent and 0.2 percent, respectively.

As many as 17 stocks hit circuit tops during the session, while 7 tested their circuit bottoms. 81 stocks tested their 52-week highs during the session, while 11 tested their 52-week lows.

We have Narendra Solanki from Anand Rathi Shares & Stock Brokers to share his take on the day’s actions and the road ahead:
Welcome to the broadcast, sir:
1. Domestic markets rallied strongly today with the HDFC merger dominating the headlines. Have geopolitical tensions receded into the background?
2. Banking and financial stocks significantly outperformed the leading indices. What does the HDFC merger mean for the industry?

We also caught up with Nirav Chheda of Nirmal Bang Securities Research to decode the technical charts for you.

1. The Nifty50 rose above 18,000. What do the technical charts say about this?
2. Bank Nifty posted much bigger gains than the headline index today. What’s your outlook?

Asian markets mostly ended the day in gains. Major European markets traded with profits for the first few hours of trading. Meanwhile, US stock futures rose, signaling a firm start for US stocks later in the day.

That’s all for now. Visit for all the latest news, market analysis, investment strategies and dozens of stock picks. Enjoy your evening. Bye Bye! sensex: Market Watch: What the HDFC merger means for the financial sector

Adam Bradshaw

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