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PremiumIndian indices on Monday continued their winning streak for the second straight day, aided by gains in HDFC Bank and HDFC after the announcement of their merger. The market movement is largely due to the "unexpected announcement" of the merger, said Saurabh Jain, assistant vice president at SMC Securities. The investors will be closely watching the outcome of RBI's monetary policy committee's meeting on Friday. The global peers ended mixed, hit by inflation worries, expectations of rate hikes by US Fed, and fears of more sanctions on Russia. Shares in Japan, South Korea, Hong Kong, and Australia advanced on Monday, despite oil prices rising above $105 a barrel.
Indian indices edged higher on Monday with the help of gains in HDFC Bank and HDFC as both companies decided to merge. Global sentiments were mixed as shares in Europe ended lower, while that in Asia advanced.
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.
On the 30-stock index, the most gains were made by HDFC Bank, HDFC, Kotak Bank, and Hindustan Unilever among others, while 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.
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Indian markets opened on a positive note following positive Asian market peers and aided by merger announcement between India's largest private bank and largest private mortgage lender companies HDFC Bank and HDFC Ltd. During the afternoon session markets maintained its positive momentum. Sentiments were also upbeat as India's merchandise exports spurt to a record high of $418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals.
HDFC Bank and HDFC shares continue to soar in noon deals following the massive announcement merger between both the companies. HDFC Bank was last up 9.21% at ₹1,644.75 apiece on NSE. The stock zoomed nearly 14% in intra-day deals earlier in the morning.
British telecom major Vodafone has raised its stake in Vodafone Idea Ltd through its subsidiary Prime Metals, a regulatory filing said on Monday.
Oil rose above $105 a barrel on Monday as concern about tight supply arising from Russia's invasion of Ukraine and the lack of an Iranian nuclear deal persisted despite countries releasing oil from strategic reserves.
The invasion of Ukraine in February sharply ramped up supply worries that were already underpinning oil prices. Sanctions imposed on Russia and buyers' avoidance of Russian oil have raised fears of larger supply losses from this month.
Brent crude was up 63 cents, or 0.6%, to $105.02 a barrel by 0805 GMT. U.S. West Texas Intermediate crude gained $1.08, or 1.1%, to $100.35. Both contracts slipped $1 when markets opened on Monday.
Gold prices were steady on Monday as the dollar and Treasury yields firmed following a solid U.S. payrolls report that raised expectations of aggressive rate hikes, while a worsening Ukraine crisis supported safe-haven bids for bullion.
Spot gold was little changed at $1,928.36 per ounce by 0700 GMT. U.S. Gold futures was up 0.2% to $1,928.10.
Asian markets mostly rose Monday as another strong jobs report provided some reassurance that the recovery in the US economy remained on track, though it also solidified expectations for more aggressive Federal Reserve interest rate hikes.
The gains were helped by another recent drop in oil prices after the 31-nation International Energy Agency agreed to tap its vast reserves to offset the removal of Russian exports, while the start of a ceasefire in Yemen eased concerns over supplies from the region.
Officials said Friday that the world's top economy added 431,000 positions in March while the unemployment rate fell to just slightly above pre-pandemic levels.
The figures showed that while inflation has surged to a 40-year high and the Ukraine war has fanned uncertainty, the recovery continues.
The economy's resilience will be taken as further evidence that it could withstand a sharper rise in interest rates to bring prices under control, with many observers now predicting a half-point hike in May.
However, expectations that rates will continue to go up have seen Treasury yields surge with commentators saying there were warning signs that growth will slow as the year progresses.
Birlasoft shares have remained under consolidation phase in first one and half month this year. However, the IT stock is showcasing strong rebound from its recent lows around ₹380 apiece levels. In last one and half month, Birlasoft share price has appreciated up to ₹470 per share levels, logging around 25 per cent jump in this period.
Indian share markets have been afroth with volatility in the last couple of months.
After declining in December 2021 markets recovered only to be sit again by the Russia Ukraine war. But this hasn't dampened investor spirit.
Global benchmark indices, including the Sensex and the Nifty, are all up by more than 10%, which, truth be told is not startling.
However, with globalisation reaching a crescendo, the volatile nature of the market has only intensified.
Accepting and embracing volatility is central to benefit from the returns the market offers over time. Instead of worrying about the volatility, you must be prepared to deal with it.
Here are some tips to help you prepare for the next market correction.
Tata Power arm Tata Power Renewables has commissioned a 300 MW solar plant in Dholera, Gujarat with the country's largest single-axis solar tracker system.
Fuel prices continued to maintain an upward trend with petrol and diesel rates hiked by another 40 paise per litre each on Monday, compounding an increase of about ₹8.40 a litre in twelve revisions in 14 days so far.
The mega-merger between HDFC ltd into the HDFC bank will enable value unlocking for HDFC bank to build a solid housing loan portfolio and play the housing cycle by enhancing the existing customer base. The merged entity could become the highest weightage single company in the Nifty 50 basket. Further, this merger enables confidence in the Indian economy and looks for a brighter long-term picture beyond the ongoing Russia-Ukraine conflict and the rising inflationary concerns. With this development, today India's VIX fell further by 2.5% to 18 levels vs the long-term average of 22. 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 sequential improvement in loan growth. Moreover, the improving asset quality trend will continue for the quarter, bringing further confidence to the space.
Tokyo's Nikkei index firmed on Monday, tracking gains on Wall Street although developments in Ukraine and Covid-19 lockdowns in China weighed on the market.
The benchmark Nikkei 225 index shed earlier losses and ended up 0.25 percent, or 70.49 points, to 27,736.47. The broader Topix index rose 0.48 percent, or 9.36 points, to 1,953.63.
The Tokyo market opened up after Wall Street stocks finished modestly higher Friday as solid US jobs data boosted expectations for more Federal Reserve interest rate hikes.
IDFC Limited on Sunday informed that the company's board at its meet this week on Wednesday, April 6, 2022 to consider and declare interim dividend on paid up equity share capital of the company.
HDFC Bank has approved merger with HDFC Investments Limited and HDFC Holdings Limited. Post-merger HDFC Limited will hold 41% stake in HDFC Bank. This shall enable the bank to build its housing loan portfolio and enhance its existing customer base. HDFC Bank shares jumped as much as 14.4%, while HDFC Ltd surged 19.6% after the merger announcement.
The cooking gas distribution company, Indraprastha Gas Ltd (IGL) on Monday increased the CNG price by ₹2.5 per kg as reported by news agency ANI. The new price will come into effect from today, April 4. The company in its official statement claimed that this increment is done to cover the hike in input gas cost.
Multibagger stocks: In market rebound post-Covid-19 selloff, a good number of stocks have entered the list of multibagger stocks in India in last two years. This list of multibagger stocks in India include those quality stocks as well that have been giving stellar return to its investors for long. Tata group stocks — Tata Elxsi, Tata Consumer Products and Titan Company — are among those quality stocks. These shares have been giving multibagger return to its shareholders after a gap of 4 years since 2009.
Novartis AG has entered into agreements with Dr Reddy’s Laboratories (DRL) and JB Chemicals & Pharmaceuticals (JBCPL) for their cardiovascular combination of Valsartan and Sacubitril in India. The patented molecule has been growing at around 38% CAGR over FY19-21 and is one of the fastest growing molecules in the cardiology segment, highlighted domestic brokerage and research firm ICICI Securities.
Vijay Kedia portfolio stock Tejas Networks share price has hit upper circuit for fourth straight session today. Tejas Networks share price today opened opened 5 per cent higher from its Friday close and ascended to its intraday high of ₹470.45 apiece levels leading to no seller available for the scrip. This all happened in the stock within minutes of market opening.
Shares of HDFC Ltd and HDFC Bank surged more than 15% to ₹2,818 and 14% to ₹1,715 apiece respectively on the BSE in Monday's early deals, after the companies announced plans to merge with each other. Meanwhile, the Nifty Bank index rose over 4%, while the finance index gained over 3%.
The rupee started the financial year 2022-23 on a muted note and inched higher by 3 paise to 75.71 against the US dollar in early trade on Monday amid a firm trend in the domestic equity market.
At the interbank foreign exchange, the rupee opened lower at 75.77 against the American dollar, then touched an early high of 75.71, up 3 paise over its previous close. The local unit also reached 75.79 in initial deals.
On Thursday, last trading session of FY22, the rupee advanced by 16 paise to close at 75.74 against the US dollar.
The local unit, however, closed the 2021-22 fiscal with overall losses of 3.61 per cent or 264 paise against the American currency due to a stronger dollar and surging crude oil prices.
The forex market was closed on Friday for the annual account closing of banks.
Global oil benchmark Brent crude futures rose 0.13 per cent to USD 104.53 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 98.57.
State-owned fuel retailer Indian Oil Corporation Ltd, engineering conglomerate Larsen & Toubro (L&T), and renewable energy major ReNew have proposed to set up a joint venture company to develop the nascent green hydrogen sector in India.
IRB Infrastructure Developers Ltd. has commenced toll collection on the the Palsit-Dankuni national highway in West Bengal, effective 2 April. It will continue to collect toll for the concession period of 17 years, the company said in a statement.
Indian stock markets surged today, driven by strong gains in index majors HDFC Bank and HDFC amid mixed trends in Asian markets. The Sensex skyrocketed over 1500 points when it touched 60,845 at day's high while the broader Nifty was firm above 18,050. Shares of HDFC climbed 15% while the HDFC Bank stock went up 13% after India's largest private lender HDFC Bank will merge with the country's largest housing finance company HDFC Ltd to create a financial services conglomerate, sending their shares sharply higher.
Key takeaways from Mar’22 include: a) India’s mobility data witnessed MoM improvement as transit mobility resumed even as workplace mobility was higher MoM; global mobility data, which plunged across regions, is yet to witness complete recovery (e.g. Europe, US – charts 1-6); b) in domestic retail, PV sales grew ~12% MoM (down 5.6% YoY) as production gradually normalises; 2W sales too grew at a higher pace of 17.6% due to resumption of office and schools; c) on the commercial side, 3W sales were up ~24% MoM with CV sales gaining steam at 22% MoM growth on a higher base. Electric PVs/2Ws reached their all-time high shares at 2.1%/7.1% respectively
Marico is relatively well placed; however, Q1FY23 is expected to be painful for everyone. We had witnessed inflation in copra and edible oil last year which is similar to what the industry is facing today. The strategy is to not lose volumes and market shares. Margins can be impacted in the short term. There are possibilities of pushback on strategic funding for new initiatives. Preventing downtrading and market share is paramount, said Saugata Gupta, MD & CEO, Marico, in an interview with ICICI Securities
Gold prices was flat on Monday, as the U.S. dollar and yields firmed after strong jobs data raised expectation of aggressive rate hikes, offsetting support from safe-haven demand fuelled by a worsening Ukraine crisis.
India's largest private lender HDFC Bank will merge with the country's largest housing finance company HDFC Ltd to create a financial services conglomerate, the companies said on Monday, sending their shares sharply higher.
As part of the deal, shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41% of HDFC Bank.
Shares held by the housing finance company in the lender will be extinguished, making HDFC Bank a full-fledged public company.
HDFC Bank shares jumped as much as 10%, while HDFC Ltd surged 13% after the announcement.
Analysts believe the merger could be the outcome of a recommendation by the Reserve Bank of India in November 2020 that well-run large shadow lenders with an asset size of over 500 billion rupees may be considered for conversion into banks.
"The resulting larger balance sheet would allow underwriting of large ticket infrastructure loans, accelerate the pace of credit growth in the economy, boost affordable housing and increase the quantum of credit to the priority sector...," HDFC Ltd Chairman Deepak Parekh said.
As of Friday's close, HDFC Bank had a market value of 8.34 trillion rupees ($110.06 billion), while HDFC Ltd was worth 4.44 trillion rupees ($58.59 billion).
"This is a long-awaited merger and will be beneficial for both the companies but particularly more for HDFC Ltd that was competing with the likes of State Bank of India in a competitive home loan market, leading to pressure on margins due to disadvantages to its cost of funds," said Asutosh Mishra, research analyst at Ashika Stock Broking.
"Now the combined entity will have the same cost structure as other banks, which will allow them to compete better with their peers."
The subsidiaries and associates of HDFC Ltd will shift to HDFC Bank, the companies said in a regulatory filing.
Indian private lender HDFC Bank will merge with housing finance firm HDFC Ltd, the companies said on Monday.
