The market capitalisation of HDFC Bank topped Rs 5 lakh crore on Thursday for the first time ever, with this HDFC Bank became the third Indian company to enter Rs 5 lakh crore market cap club as India’s stock markets continue the record-breaking run following the government’s decision to bring down additional borrowing. Shares of India’s most valuable lender HDFC Bank were among the top three gainers on both the headline indices Sensex and Nifty on Thursday. The stock of HDFC Bank surged as much as 3.31% to a record high of Rs 1,953.75 on BSE while the stock rose 3.35% to a lifetime high of Rs 1,954 on NSE. Shares of almost all BFSI (Banking, Financial Services and Insurance) sector were also rallying heavily on Thursday with HDFC twins, Yes Bank, IndusInd Bank, SBI, ICICI Bank, PNB, Axis Bank, rising up to 5% in today’s trade.
Following a sharp spike in the share prices of HDFC Bank, India’s most valuable private-sector lender HDFC Bank added as much as Rs 16,227.12 crore to Rs 5,06,045.4 in the market capitalisation from Rs 4,89,818.28 as per the closing price of Rs 1,891.1 on Wednesday. Now with a market capitalisation of over Rs 5 lakh crore, HDFC Bank became the third Indian company to have a market value of more than Rs 5 lakh crore. Apart from HDFC Bank, India’s most valuable enterprise Reliance Industries and India’s largest IT company Tata Consultancy Services commands a market capitalisation of Rs 5,85,665.87 crore and Rs 5,53,123.83 crore respectively.
Earlier on Monday this week, shares of HDFC zoomed 7% on Monday after the board of India’s largest housing financier approved fundraising of up to Rs 13,000 crore primarily to maintain its holding in HDFC Bank and to enter segments like stressed assets and health insurance. With a sharp rise in the share prices of HDFC, the market capitalisation of mortgage lender zoomed past Rs 3 lakh crore. HDFC Ltd on Monday surpassed Maruti Suzuki India and Hindustan Unilever to become the fifth-largest company by market capitalisation in Indian bourses.
Meanwhile, Indian equities extended the bull run on Thursday led by the government’s decision to bring down on additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore. Following the development, the domestic markets surged to record highs on Wednesday with Sensex surpassing the psychological mark of 35,000. On Thursday, the bull run continued with the headline indices Sensex and Nifty extending their gains to hit newer record highs. Shares of Yes Bank advanced as much as 4.23% to the day’s high of Rs 356.9 as the fifth-largest private sector lender is all set to announce the third quarter results later today. BSE Sensex gained as many as 404.9 points to hit a lifetime high of 35,486.72 while NSE Nifty added 98.55 points to mark the record high of 10,887.1 on Thursday.
Shares of India’s largest lender State Bank of India jumped 3.5% to a day’s high of Rs 317.8 while shares of other prominent BFSI companies such as Axis Bank, ICICI Bank, IndusInd Bank, Punjab National Bank, Bharat Financial Inclusion, Kotak Mahindra Bank and Bank of Baroda surged up to 2.5% in the day’s trades. The stock of ICICI Bank and Axis Bank hit their respective 52-week highs rising by 1.52% to Rs 353.2 and 2.02% to Rs 597.15 on NSE. The domestic markets took a breather on Tuesday on account of the widening of trade deficit to a 3-year high but resumed on the rising streak after the Narendra Modi government lowered the additional borrowing requirement for the current fiscal to Rs 20,000 crore from Rs 50,000 crore estimated earlier.