Sensex Breaches 60,000 Mark On Back Of HDFC Twins' Merger Announcement

Indian equity benchmarks continued their gains on Monday, fuelled by the HDFC and HDFC Bank merger announcement. Also, a renewed buying interest from foreign institutional investors (FIIs) aided investor sentiment. However, global share markets were mixed on Monday amid talks of more sanctions against Russia over its invasion of Ukraine.

The Sensex added 1335.05 points, or 2.25%, to close at 60,611.74, while Nifty50 gained 382.95 points to end at 18,053.40. All the sectors ended in the green with banks, financials, power, metals making solid gains.

“Though the markets opened weak, key indices quickly rebounded and clung on to the key psychological levels of 60,000 and 18,000 respectively. The trigger was that the markets gave thumbs up to the HDFC merger announcement and the rally in both the stocks spread to other financial stocks and also had a rub-off effect on other sectoral stocks. Also, recent key economic indicators such as core growth numbers and all-time high GST collections showed that the domestic economy has shrugged off geopolitical tensions,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

HDFC Bank and HDFC were the top gainers in Monday’s session on the 30-stock index, surging more than 9 per cent. Kotak Bank, Hindustan Unilever, Indusind Bank and Tata Steel were among other top gainers. Infosys and Titan were the only two losers.

On Nifty50, HDFC Bank, HDFC, HDFC Life, Adani Ports, and Kotak Bank made the most gains, while Infosys, Tata Consumers, Titan, and JSW Steel were among the laggards.

"Nifty bulls seize control of the psychological 18000 mark as HDFC, HDFC Bank stocks witnessed a spectacular rally and the twin stock also surpassed TCS in terms of market capitalisation. Helping sentiments were renewed buying interest from FIIs, easing of the Russia-Ukraine crisis and most importantly, fall in oil prices. The impulsive risk-on theme and Nifty’s strong closing shall usher in a ‘new leg to the bull market," said Prashanth Tapse, Vice President (Research), Mehta Equities.

Shares of Adani Ports and Special Economic Zone rose 4.2 per cent after it reported strong March business operations.

Indian 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.

“On daily charts, the Nifty is holding an uptrend formation but due to overbought texture, traders may prefer to book some profit at higher levels. For the trend following traders, 17880 would act as a crucial support level, and above the same, the index may touch the level of 18150-18200. On the flip side, a quick intraday correction is not ruled out if the index trades below 17880 and below the same it could retest the level of 17790-17750,” said Chouhan.

Later in the week, investors will also keep a close look on the outcome of RBI’s monetary policy committee meeting.

(With inputs from Reuters)