The merger is expected to be completed by Q2/Q3 of FY24
The banking sector, according to analysts at ICICI Securities, has been underperforming at the bourses against the overall market in the last six months largely due to credit growth concerns
Shareholders of HDFC Ltd will receive 42 shares of HDFC Bank for 25 shares held
Profitability could to take hit in the short run
Shares of HDFC Bank may hit the Rs 2,000-mark, while HDFC is likely to rally towards Rs 3,200.
Shareholders of HDFC Ltd will receive 42 shares of the bank for 25 shares held. Existing shareholders of HDFC Ltd will own 41 per cent of HDFC Bank.
The HDFC Bank and HDFC Ltd. merger is expected to be completed by Q2/Q3 of FY24
The share exchange ratio for the amalgamation of HDFC with and into HDFC Bank shall be 42 equity shares of face value of Re 1 each of HDFC Bank for every 25 equity shares of face value of Rs 2 of HDFC
IT stocks are likely to be in focus ahead of the earnings season and likely benefit from the India-Australia trade deal.
PVR and INOX Leisure are likely to be in focus after the two mega multiplex owners announced an all-stock merger on Sunday.
Foreign portfolio investors exited India in droves and have sold stocks since October 2021 amid fears of an earlier and faster-than-expected rate hike by the US Federal Reserve (US Fed)
In December 2020, RBI had imposed restrictions on HDFC Bank on issuing new credit cards, and introducing new digital initiatives due to concerns over recurring IT-system outages
This moves comes as a positive for HDFC Bank as this will paddle growth opportunities, said brokerage ICICI Securities.
'Reserve Bank of India has lifted the restriction on the business generating activities planned under the Bank's Digital 2.0 programme,' announced HDFC Bank
The stocks of HDFC and Bajaj Group are not showing any exciting picture on tech charts at the moment
At 11:53 am; Nifty Bank, Nifty Financial Services, Nifty PSU Bank and Nifty Private Bank indices were up 4 per cent, as compared to a 2.3 per cent rise in the Nifty50 index.
Nomura pointed out that even though the outlook for banks remains positive, a prolonged conflict-like situation would be negative for global growth
Nifty Auto, Nifty Realty, Nifty Bank, Nifty Private Bank, Nifty PSU Bank and Nifty Financial Services indices were down in the range of 4 per cent to 5 per cent on the NSE.
Apart from the 8 stocks among the Nifty50 index, a total of 26 stocks too dropped to their respective 52-week lows among the Nifty500 index.
The stock has underperformed post management change, more so due to the RBI's embargo on its card/ digital initiatives and Covid-induced disruption.