The 30-share BSE sensex jumped 1,335 points or 2.25 percent to close at 60,612; while the broader NSE Nifty settled 383 points or 2.17 percent higher at 18,053.
Major gainers in the sensex bundle included HDFC twins, Kotak Bank, HUL, L&T and IndusInd Bank, which rose as much as 9.97 percent.
Infosys and Titan were the only stocks to finish in the red.
On the NSE platform too, all sub-indices finished in the green with Nifty Financial Services, Bank and Private Bank gaining as much as 4.64 percent.
Furthermore, the BSE sensex reclaimed the 60,000 mark by closing at 60,612 after a gap of almost 2.5 months. It had closed at 60,099 on January 19.
Here are the main reasons for today’s gains:
* HDFC-HDFC Bank merger
In the largest merger in corporate history, India’s largest housing finance company, HDFC Ltd, will merge with the country’s largest private lender, HDFC Bank, to create a banking giant.
Once effective, HDFC Bank will be 100 percent owned by public shareholders and existing HDFC shareholders will own 41 percent of the bank, according to the companies’ stock exchange filings.
Each HDFC shareholder will get 42 shares of HDFC Bank for every 25 shares held.
The merger will make HDFC the second largest company in India with a market capitalization of nearly Rs 13 lakh crore.
After the announcement, shares in HDFC and HDFC Bank soared. HDFC Bank’s shares closed up 9.97% at Rs 1,656.45 on the BSE, while HDFC’s ended up 9.3% at Rs 2,678.9.
The market move is largely due to the “unexpected announcement” of the merger, Saurabh Jain, deputy vice president of SMC Securities, told the Reuters news agency.
“This is very positive news in that the share of foreign institutional investors will increase after the merger,” Jain said.
* Broad-based rally across all sectors
The BSE mid-cap index rose 1.27 percent, while the small-cap index jumped 1.68 percent.
All sectors ended in the green, with banking and financial stocks leading market gains after the planned HDFC-HDFC Bank merger.
Both HDFC and HDFC Bank were the main laggards last year, gaining 1.1 percent and 3 percent respectively, compared to a 13.5 percent rise in the Nifty Banking Index.
Shares of Adani Ports and Special Economic Zone rose 4.2 percent after reporting strong trading in March.
Sugar stocks rose as much as 4.5 percent on export deals.
Shares of commercial vehicle maker SML Isuzu soared 20 percent after a strong March sales update and a rise in vehicle prices.
Also, investors will now closely watch the Reserve Bank of India (RBI) monetary policy decision on Friday.
* Mixed global markets
Asian markets were mostly higher on Monday as another strong jobs report provided some assurance that the US economic recovery remained on track, though it also solidified expectations of more aggressive interest rate hikes. of the Federal Reserve.
Wall Street benchmarks rose on Friday after the jobs report eased concerns about a recovery from the pandemic, though it also reinforced the likelihood of more interest rate hikes.
European stocks were mostly lower, while Paris, Frankfurt, Tokyo and Hong Kong rose. London changed little. Shanghai markets were closed for holidays.
Oil prices advanced while US futures fell.
How sensex regained the 60,000 mark
After being under pressure for the past few months, the stock markets appear to be recovering with the BSE sensex retaking the 60,000 mark.
In recent months, the markets have witnessed many headwinds, starting with the third wave of Covid, inflationary pressures, and a raging war between Russia and Ukraine that led to a geopolitical crisis.
The sensex climbed to an all-time intraday high of 62,245 on October 18. Since then, both benchmarks have come under pressure.
The markets have seen plenty of ups and downs since then, but remained below 60,000 on most days.
The ongoing war between Russia and Ukraine led sensex to witness one of the worst accidents in the last 2 years. Sensex fell to a low of 52,843 in early March.
However, markets have seen a gradual recovery since oil prices cooled and some resolution to the conflict between Russia and Ukraine was expected.
Despite global markets reeling under the pressure of the ongoing war, which has been going on for over a month, both sensex and Nifty have performed well during March.
While the BSE index jumped 4.13 percent, the broader NSE Nifty also advanced more than 5 percent this month, outperforming global peers.
This helped the BSE sensex to reclaim the 60,600 mark in today’s trade, while the Nifty spiked past the 18,000 mark.
Investors earn Rs 4.52 lakh crore
The market capitalization of BSE-listed companies, also an indicator of investors’ theoretical wealth, rose to Rs 272.41 lakh crore at the end of today’s trade.
This marks a gain of over Rs 4.52 lakh crore compared to the market valuation of Rs 267.88 lakh crore at the close of trading on the BSE on 1 April.
(With contributions from agencies)