HDFC twins to tango 💃💃

Nifty50: 18,053 ▲382 (+2.1%)
Sensex:  60,611 ▲ 1,335 (+2.2%)

• Led by strong interest in banking and financial stocks, the Nifty50 crossed the 18,000 mark for the first time in 10 weeks.
• In all, 46 of the Nifty50 stocks closed in the green.
• Investors will be keeping a close tab on the outcome of RBI’s Monetary Policy Committee meeting on Friday.

Among the Nifty sectoral indices, Financial Services (+4.6%) and Bank (+4.0%) were the top gainers, while there were no losers.

Did you know?

You can now place Good-Till-Triggered (GTT) orders on the new Upstox app. To know more about GTT orders, click here.

For more updates on F&O, click here.

Here are the top stories of the day.

HDFC to merge with HDFC Bank

Housing Development Finance Corporation (HDFC) will merge with India’s largest private sector lender HDFC Bank. Through this transformational merger, 100% of HDFC Bank shares will be held by the public, and shareholders of the housing finance company will own 41% stake in the private sector bank. Following this news, the shares of both HDFC and HDFC Bank jumped by over 14% intraday.

Through this deal, the bank hopes to leverage on the customer base and grow its home loan portfolio. Meanwhile, HDFC will capialise on this arrangement by gaining access to a cheap source of funds. To read more about the merger, click here.

Asian Paints makes new acquisitions

In a bid to become a one-stop home solutions provider, Asian Paints has acquired two companies. The Indian paint giant is set to acquire a 49% stake in the household lights and fans seller White Teak for ₹180 crore. Further, it will be investing ₹19 crore for a 51% share in Weatherseal Fenestration, an interior decor company that also manufactures uPVC windows and doors. Asian Paints plans to gain additional stakes in both the companies in the future.

The company had previously entered the modular kitchens and bathroom fittings segments through its acquisitions of Sleek Kitchen and Ess Ess Bath Fittings.

Indian Oil, L&T, ReNew join forces to go green

Indian Oil Corporation (IOC), Larsen & Toubro (L&T), and ReNew Power (ReNew) have agreed to form a joint venture (JV) to develop the green hydrogen sector in India. All the three companies will have equal stakes in the venture. IOC and L&T will also form another JV to manufacture and sell electrolyzers used in the production of green hydrogen.

According to the official statement, L&T will contribute by designing, executing, and delivering EPC projects, while IOC’s presence across the energy sector will add to the project along with its expertise in petroleum refining. Meanwhile, ReNew will offer and develop utility-scale renewable energy solutions. 

IPO corner

On Day 4, the IPO of steel product maker Hariom Pipe Industries was subscribed by more than 3 times. The retail portion, which has received strong interest, was subscribed by around 7 times. Click here to apply for this public issue on Upstox.

Good to know

What is hyperinflation?

Hyperinflation is used to describe situations where the prices of all goods and services increase uncontrollably over a specific period of time. It usually occurs when there is a massive rise in money supply, which is not supported by economic growth. The surge in money supply is often caused by the government pumping more money into domestic markets. Hyperinflation might occur in times of war and economic turmoil. In such times, prices of basic goods like food, fuel skyrocket as they are in short supply. As a result, the value of the currency plunges to dramatic levels.

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