Share Market updates: Sensex zooms 1,335 pts; HDFC, HDFC Bank top gainers

Good afternoon!

The Indian equity market was trading higher in afternoon session today. Sensex rose 1,158 points to 60,435 and Nifty gained 326 points to 17,997.

It turned out to be a solid week for the domestic equity market as the benchmark equity indices BSE Sensex and NSE Nifty climbed over 3 per cent in the past five trading sessions. The benchmark BSE Sensex gained 1,914 points to 59,276 on April 1, 2022, against 57,362 on March 25. Likewise, the 50-share NSE Nifty index jumped 517 points to 17,670 during the same period.

Market watchers believe that a sharp fall in crude oil prices aided market sentiment. In the international markets, Brent crude oil retreated 14 per cent to $103.66 per barrel from around $121 a barrel last week. Meanwhile, robust goods and services tax (GST) numbers further fuelled the rally on the last day of the week.

What's next? Here are the latest updates!

3:38 pm: Market ends in green

Sensex rose 1,335 points to 60,611 and Nifty gained 383 points to 18,053.

3:18 pm: Market check

Sensex rises 1,372 points to 60,648 and Nifty gains 392 points to 18,063

2:50 pm: Maruti, Hyundai report de-growth in March sales; Toyota, Skoda see growth

Indian automakers like Maruti Suzuki, Hyundai, Renault, Honda, MG and Nissan reported a de-growth in monthly sales in March 2022. However, car manufacturers like Tata Motors, Mahindra, Toyota, Skoda and Volkswagen recorded an increase in sales.

According to the Federation of Automobile Dealers Associations (FADA), the total number of cars dispatched to dealers in India stood at 3,21,590 units in March 2022, 0.33 per cent more than in the same period last year. Indian original equipment manufacturers (OEMs) had dispatched 3,20,543 cars in March 2021, it added. READ MORE

2:13 pm: Market breadth is positive with 2632 stocks rising against 820 falling on BSE. 159 shares were unchanged.

1:57 pm: Market check

Sensex rises 1,158 points to 60,435 and Nifty gains 326 points to 17,997.

1:35 PM: Bajaj Auto records 20% decline in March sales

Bajaj Auto achieved total sales of 2,97,188 units in month of March 2022 compared to 3,69,448 units in March 2021, recording a decline of 20 per cent. Total sales include domestic sale of 1,26,752 units and export of 1,70,436 units. For FY22, the company's total sales stood higher by 8 per cent at 43,08,433 units compared to corresponding period of previous year. For FY22, domestic sales declined 6 per cent to 18,01,807 units while exports rose 22 per cent to 25,06,626 units. READ MORE

1:15 pm: HDFC twins' merger is win-win for shareholders; here's why

Following the announcement of the merger of HDFC with HDFC Bank, shares of both the financial majors surged up to 16 per cent in Monday's trade. Analysts on Dalal Street gave a thumbs up to the announcement. They believe that the merged entity will gain from the cross-selling opportunities and synergies.

In regulatory filings, the HDFC twins said that once the scheme is in place, the subsidiaries and associates of HDFC will become subsidiaries and associates of HDFC Bank. Shareholders of HDFC on the record date will receive 42 shares of HDFC Bank, for 25 shares held in HDFC Limited. READ MORE

12:55 pm:  HDFC Bank stock climbs over 14%

Shares of HDFC Bank climbed 14.31% today amid news of merger with HDFC. Also, deposits rose nearly 17 percent YoY and 8 percent QoQ in Q4 FY22 while advances gained 21 percent YoY and near 9 percent QoQ. CASA Ratio came at an all-time high of 48.2 percent.

 The stock hit an intraday high of Rs 1,721.85, gaining 14.31% on BSE.

12:36 PM: Market cap of BSE-listed firms rises to Rs 270.81 lakh crore.

 Market breadth is positive with 2531 shares rising against 867 falling on BSE.

12:20 pm: Dr Reddy's Laboratories stock trading flat

Dr Reddy's Laboratories shares trading marginally higher in noon session. Stock of Dr Reddy's Laboratories rose 0.52% to Rs 4,300 against the previous close of Rs 4,278.65 on BSE. The company has signed an agreement with Novartis AG to acquire the cardiovascular brand Cidmus in India. The acquisition cost is $61 million.

12:10 pm: JSW Energy stock rises 5%

Shares of JSW Energy hit upper circuit of 5% today after the firm's arm JSW Neo Energy inked an agreement with the Chhattisgarh government for setting up a 1,000 MW capacity of hydro pumped storage project in the state. JSW Energy stock gained 5% to Rs 323.7 against the previous close of Rs 308.30 on BSE.

Shares of JSW Energy opened with a gain of 3.76% at Rs 319.90. JSW Energy is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The large cap stock has risen 257% in one year and gained 7.61% since the beginning of this year Total 0.23 lakh shares of the firm changed hands amounting to a turnover of Rs 73.35 lakh on BSE.

12:00 pm: Market check

Equity benchmark Sensex was trading 1100 points higher at 60,398. Nifty was up 308 points to 17,978.HDFC and HDFC Bank were the top gainers on Sensex.

11:30 am: India’s manufacturing PMI falls to 54 in March

India’s manufacturing activity in March fell marginally to 54.0 from February’s 54.9. The fall highlighted the joint-weakest rate of growth since September 2021, stated S&P Global India Manufacturing Purchasing Managers’ Index. 

The report said that while business conditions improved, the latest results showed slower expansions in factory orders and production as well as a renewed decline in new export orders. Business confidence which fell to its lowest level in two years was dampened by inflation concerns. 

"For now, demand has been sufficiently strong to withstand price hikes, but should inflation continue to gather pace we may see a more significant slowdown, if not an outright contraction in sales,” said Pollyanna De Lima, Economics Associate Director at S&P Global.

11:00 am: Reasons behind the merger of HDFC and HDFC Bank

The long-speculated merger of mortgage player HDFC Ltd and the largest private sector HDFC Bank is finally taking place. The bank offers retail as well as wholesale products whereas HDFC Ltd is into home loans. 

Let's look at the main reasons for the merger: Explained: The main reasons behind the merger of HDFC and HDFC Bank

10:45 am: Abhay Agarwal, Founder, and Fund Manager, Piper Serica on the merger

The timing of the merger has caught everyone by surprise but the merger by itself is not surprising. With a tightening of the regulatory environment especially with regards to the NPA recognition norms of the high-margin builder-lending book of HDFC and increased competition from public sector banks and new-age fintech companies, it is not entirely a merger of choice. 

The merger will be more beneficial to HDFC Ltd. since it has a lower profitable business and with HDFC Bank it can increase its product penetration. However, the business-related synergies could have been driven without the merger also. 

The bet by the management is clear that the increased balance sheet size of the entity will enable it to increase its competitiveness and create shareholder value. We can see some cost synergies through this merger however it is difficult to see how the merger will by itself help the merged entity increase its market share. HDFC Bank has been beset by the woes of its digital initiatives and many parts of its retail banking are under pressure from fintech companies. 

HDFC Ltd. is facing increasing pressure from public sector banks for the mortgage business. At the same time, it is commendable that the management has decided to proactively undertake this merger to increase its competitiveness. The management has the wherewithal to meet the short-term challenges and come out on top. 

However, it has its work cut out. While the markets have given a euphoric reaction to this news, we believe that the earnings of HDFC Bank could be downgraded in the near term and the onus will be on the management to prove the upside of the merger through operating performance.

10:30 am: Banking stocks log strong rally after HDFC, HDFC Bank announce merger

Banking shares were the top gainers in early trade after the HDFC and HDFC Bank announced a merger. BSE bankex zoomed up to 1,130 points to 43,726 against the previous close of Rs 42,596, translating into a gain of 2.65% in early trade. Bank Nifty too climbed 3.28% or 1221 points to Rs 38,369 against the previous close of Rs 37,148.

Shares of HDFC and HDFC Bank were the top Sensex and Nifty gainers today. HDFC stock hit upper circuit of 15% or Rs 367.60 to Rs 2818.55 in early trade on BSE. Similarly, HDFC Bank stock rallied 13.925 to Rs 1715.95 against the previous close of Rs 1506.30 on BSE.

Read: Bank Nifty climbs over 3% after HDFC, HDFC Bank announce merger

10:20 am: Sensex zooms over 1500 points

10:00 am: Sensex zooms over 1300 points

Equity benchmark Sensex zoomed over 1300 points and Nifty jumped over 320 points to cross 18k mark.

9:45 am: HDFC, HDFC Bank shares on a roll!

The merger ratio will be 42 shares of HDFC Bank to 25 shares of HDFC. Completion of merger process expected by Q2/Q3 FY24.

9:35 am: Sensex zooms over 1000 points

Sensex zoomed over 1000 points to 60,362. Likewise, Nifty also jumped over 250 points to 17,927.

HDFC and HDFC Bank were the top gainers on Sensex.

9:16 am: Sensex reclaims 60k-mark, Nifty above 17,800; HDFC, HDFC Bank announce merger

Equity benchmark Sensex zoomed over 800 points to reclaim 60k mark and Nifty also jumped over 138 points to 17,809.10.

9:15 am: BREAKING

Housing finance company, HDFC to merge with private sector bank HDFC Bank

Read: HDFC to merge with HDFC Bank

8:45 am:  FII and DII action

Foreign institutional investors (FIIs) bought shares worth Rs 1,909.78 crore on April 1, and domestic institutional investors (DIIs) sold shares worth Rs 183.79 crore, as per provisional data available on NSE.

8:40 am: Global updates

The S&P 500 rose modestly to kick off the second quarter on Friday, as the monthly jobs report indicated a strong labor market and is likely to keep the Federal Reserve on track to maintain its hawkish policy stance.

The Dow Jones Industrial Average rose 139.92 points, or 0.4 percent, to 34,818.27, the S&P 500 gained 15.45 points, or 0.34 percent, to 4,545.86 and the Nasdaq Composite added 40.98 points, or 0.29 percent, to 14,261.50.

Asian share markets got off to a cautious start on Monday amid talk of yet more sanctions against Russia over its invasion of Ukraine, while bond markets continued to sound the risk of a hard landing for the US economy as short-term yields surged.

A holiday in China made for sluggish trading, and MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.1 percent. Japan's Nikkei was flat, while S&P 500 stock futures eased 0.2 percent and Nasdaq futures 0.3 percent.

8:30 am: SGX Nifty

The Indian equity market is likely to open flat today as SGX Nifty was trading 35 points lower at 17,702.50.

The Singapore Stock Exchange is considered to be the first indication of the opening of the Indian market.

8:15 am: Market on Friday

Indian equity market ended higher in the first session of the new fiscal on Friday. Sensex rose 708 points to 59,276 and Nifty ended 205 points higher at 17,670.

NTPC, PowerGrid, IndusInd Bank, SBI, HDFC and M&M were the top gainers, rising up to 5.93% today. Tech Mahindra, Sun Pharma, Dr Reddy's, Titan and Infosys were the sole Sensex losers, falling up to 0.80%.

BSE mid cap and small cap indices rose 335 points and 483 points, respectively.

Banking stocks were the top sectoral gainers with BSE bankex advancing over 842 points, followed by BSE oil and gas index rising 512 points today. All 19 BSE sectoral indices closed in the green.