HDFC, HDFC Bank shares climb

Shares of HDFC and HDFC Bank were in the limelight on Tuesday and ended in the positive territory after announcement that their merger will be effective from July 1.

The stock of HDFC climbed 1.59 per cent to settle at ₹2,762.50 per piece on the BSE. During the day, it jumped 2.26 per cent to ₹2,781.

Shares of HDFC Bank advanced 1.38 per cent to end at ₹1,658 per piece after gaining 2.23 per cent to ₹1,672 during the day.

The merger of housing finance major HDFC with the country's largest private lender HDFC Bank will be effective from July 1, HDFC Chairman Deepak Parekh said on Tuesday.

The boards of HDFC and the private bank will meet on June 30 to clear and approve the merger, Parekh told reporters in Mumbai.

HDFC vice chairman and CEO Keki Mistry said that the stock delisting of the corporation will be effective from July 13.

• Also Read: Amalgamation. NCLT approves merger of HDFC with HDFC Bank

Termed as the biggest transaction in India's corporate history, HDFC Bank on April 4 last year agreed to take over the biggest domestic mortgage lender in a deal valued at about $40 billion, creating a financial services titan.

The proposed entity will have a combined asset base of around ₹18 lakh crore.

"The domestic market rallied, primarily supported by banking and finance stocks, which received a boost from the merger updates from HDFC," Vinod Nair, Head of Research at Geojit Financial Services, said.

The 30-share BSE Sensex jumped 446.03 points or 0.71 per cent to settle at 63,416.03. The NSE Nifty climbed 126.20 points or 0.68 per cent to end at 18,817.40 points.

• Also Read: Acquisition . HDFC Credila: One of a kind deal for the HDFC group

"Domestic equities witnessed an up-move led by broad-based buying. HDFC twins too infused strength after the company announced the merger to be effective from 1st July," Siddhartha Khemka, Head - Retail Research at Motilal Oswal Financial Services Ltd, said.