Investors turned wealthier by more than Rs 4.5 lakh crore on April 4 as the domestic equity market rallied over 2 percent on the proposed merger of HDFC Ltd with HDFC Bank. Reflecting bullish investor sentiments, the 30-share key index Sensex surged 1,335.05 points or 2.25 percent to reclaim the 60,000-level, boosted by intense buying in banking and financial stocks after the announcement of merger between HDFC and HDFC Bank.

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HDFC said that the board approved a composite scheme of amalgamation for the merger.

Also read: HDFC overtakes ICICI Bank to become 5th largest company by market value

The market capitalisation of BSE-listed companies, also an indicator of notional wealth of investors, surged to Rs 2,72,46,213.62 crore. This marks a gain of Rs 4,57,826.69 crore compared to the market valuation of Rs 2,67,88,386.93 crore at the close of trading on the BSE on April 1.

As per the BSE data, as many as 179 stocks touched their 52-week highs. "It was a stellar day for the Indian equity market on the back of the out-of-syllabus announcement of a merger between HDFC Ltd and HDFC Bank," said Parth Nyati, Founder, Tradingo.

Also read: Sensex, Nifty50 leap to 11-week closing highs on HDFC twin boost: Key factors influencing market now

"More than 70 percent of contribution to the gain of Nifty50 was because of HDFC twins and led to short covering in the market. Global cues are stable whereas prices are cooling off and FIIs are showing buying interest that is leading to outperformance in the Indian equity market," Nyati added. All BSE sectoral indices mustered gains, led by finance (4.25 percent), bankex (3.45 percent), power (3 percent), utilities (2.93 percent) and capital goods (1.79 percent).

In the broader markets, the BSE midcap and small-cap gauges gained as much as 1.68 percent.

First Published:Apr 4, 2022 7:52 PM IST