Tracking gains in Asian peers, the 30-share BSE benchmark Sensex jumped 446 points or 0.71% to settle at 63,416. The broader NSE Nifty gained 126 points or 0.68% to end at 18,817.
From the Sensex pack, SBI, HDFC, and HDFC Bank were the top gainers, rising 1.5-2%. Axis Bank, Bharti Airtel, ICICI Bank, Kotak Bank, Tata Motors, and NTPC also closed higher. On the other hand, only Maruti, IndusInd Bank, HUL and ITC closed lower.
The stock exchange pushed a market holiday to Thursday from Wednesday. The shift in the Eid market holiday came after the government of Maharashtra, state where India’s financial capital Mumbai is located, changed the date for the holiday late on Monday.
LTIMindtree shares closed over 3% higher as the IT stock is likely to replace HDFC in the Nifty 50.
Sector-wise, Nifty Financial Services advanced 1.37%, and Nifty Bank gained 1.10%. Nifty IT and Nifty Realty also closed higher. In the broader market, Nifty Midcap100 gained 0.50%, and Smallcap100 rose 0.60%.
Meanwhile, the market capitalisation of all listed companies on BSE increased by Rs 1.46 lakh crore to Rs 292.13 lakh crore. The market breadth was skewed in favour of the bulls. About 2,025 stocks gained, 1,467 declined, and 146 remained unchanged on the BSE.HDFC twins merger
Leading to the creation of the fifth largest lender in the world, the merger of HDFC and HDFC Bank will come into effect from July 1 but shares of HDFC will get delisted from stock exchanges only on July 13.
HDFC chairman Deepak Parekh said the boards of HDFC Bank and HDFC will meet on June 30 post-market hours to clear and approve the merger. All regulatory approvals are already in place, he said. Following the announcement of the merger timeline, shares of HDFC Bank and HDFC ended 1.4% and 1.5% higher, respectively.
Global Markets
European shares struggled to maintain positive momentum on Tuesday, at a time when Asian stocks got a boost from the Chinese government saying it would support the economy, as investors focused on concerns about the economic outlook for Europe and the US.
Asian shares were helped by Chinese Premier Li Qiang saying that Beijing will roll out policies to boost the world’s second-largest economy. But the positive market sentiment faltered in early European trading, with the pan-European STOXX 600 down 0.1% .
The MSCI World Equity Index was a touch higher, up 0.1% on the day at 668.72, having fallen since the 14-month high of 689.04 reached more than a week ago. MSCI’s Europe index was up 0.1%, London’s FTSE 100 was up 0.1% and Germany’s DAX was down by less than 0.1% .
Expert Views
“The index gained over 100 points and closed near the high point of the day. This was majorly due to the support given by Bank Nifty, which finally fired up. HDFC Bank gave a strong performance today, complemented by ICICI Bank and Axis Bank, which pushed Bank Nifty above 44,000 comfortably,” said Gaurav Bissa, VP at InCred Equities.
“Going forward, Nifty is expected to attempt fresh life-highs with immediate support placed at 18,700 levels. Strong writing has been seen in 18,700 and 18,750 strike put options suggesting any intraday dip towards these levels is likely to be bought into,” Bissa added.
Aditya Gaggar, Director of Progressive Shares, said, “Strong green candle has formed on the daily chart, which indicates a strong comeback by the bulls. The nearest resistance for the index is a record level of 18887.60 and once the index breaks this, it will be a range breakout where the target of the formation comes around 19,100 while the downside is protected at 18,720.”
Oil prices dip
Oil prices slipped on Tuesday ahead of data shedding light on US appetite for fuel during the summer season, with the Brent benchmark’s price structure indicating bulls are retreating.
Brent crude futures were down 41 cents, or 0.6%, at $73.77 a barrel, while US West Texas Intermediate (WTI) futures fell 42 cents, or 0.6%, to $68.95 a barrel, erasing some earlier gains.
Rupee ends flat
The Indian rupee ended little changed against the dollar on Tuesday even as most Asian peers gained on signs that the Chinese central bank may be wary of the yuan’s recent decline. The rupee ended at 82.0250 to the dollar, up from 82.04 in the previous session.
(With inputs from agencies)
