Banking stocks surged today with Bank Nifty jumping above 44,150 towards the end of the session. The market sentiment improved after HDFC chairman Deepak Parekh said that the merger of the corporation with HDFC Bank will be effective July 1. HDFC stock delisting will be effective from July 13, Vice-Chairman and CEO Keki Mistry said. HDFC and HDFC Bank stocks jumped 2%. Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services soared over 1%. All the banking stocks were trading in green except PSB and Indian Bank.
State Bank of India, Federal Bank, Axis Bank, HDFC Bank, ICICI Bank and Punjab National Bank were the top gainers on the Nifty Bank index. The jump was also seen in benchmark indices with NSE Nifty 50 and BSE Sensex surging over half a percent. The NSE Nifty 50 rose 126.20 points or 0.68% to 18,817.40 and BSE Sensex jumped 446.03 points or 0.71% to 63,416.03.
“Nifty opened on a small positive note followed by some consolidation. The index picked up momentum in the second half and got stronger towards the end of the trading session. 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 which was complimented by ICICI Bank and Axis Bank which pushed the Bank Nifty above 44000 comfortably,” said Gaurav Bissa, VP, InCred Equities. Going ahead, he expects Nifty 50 to attempt fresh life high levels with immediate support placed at 18700 levels. Strong writing has been seen in 18700 and 18750 strike put options suggesting any intraday dip towards these levels is likely to be bought into.