Investors’ wealth jumps Rs 4.5 trillion as markets rise due to HDFC twin merger

Investors got richer by more than Rs 4.5 crore on Monday as the local stock market rose more than 2 per cent on the proposed merger of HDFC Ltd with HDFC Bank.

Reflecting bullish investor sentiment, the benchmark 30-share Sensex index rose 1,335.05 points, or 2.25 percent, to reclaim the 60,000 level, buoyed by heavy buying in banking and financial stocks following the announcement of the merger between HDFC and HDFC Bank.



The market capitalization of companies listed on the Bahrain Bourse, which is also an indicator of the theoretical wealth of investors, rose to Rs 2,72,46,213.62 crore.

This represented a gain of Rs 4,57,826.69 crore compared to the market valuation of Rs 2,67,88,386.93 crore at the close of trading on the Bahrain Bourse on Friday.

According to BSE data, 179 stocks touched 52-week highs.

“It was a great day for the Indian stock market on the back of the derailment announcement of a merger between HDFC Ltd and HDFC Bank,” said Parth Nyati, founder of Tradingo.

“More than 70 per cent of the contribution to Nifty50’s gains was due to the HDFC twins and led to a short coverage in the market. Global signals are stable while prices are calming and FIIs have shown buying interest leading to an outperformance in India’s stock market,” Nifty added.

All sectoral indicators of Mediterranean crab gained, led by finance (4.25 percent), banking (3.45 percent), energy (3 percent), utilities (2.93 percent) and capital goods (1.79 percent).

In the broader markets, the mid- and small-cap metrics for BSE gained as much as 1.68 percent.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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