HDFC and HDFC Bank shares continued to rise on June 28, a day after the housing financier clarified that July 1 is simply the 'tentative' date for completion of its merger with HDFC Bank.
The record date of July 13 is also tentative and subject to completion of certain formalities, HDFC Ltd said in an exchange filing on June 27, just hours after chairman Deepak Parekh spelled out the two dates.
At 12 pm, HDFC was quoting at Rs 2,778 on the NSE, higher by 0.6 percent. HDFC Bank stock was quoting over 1 percent at Rs 1,676.
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"The huge delivery volumes in HDFC twins (Rs 2900 crore in the previous session) indicate that selling in the stocks to abide by the 10 percent holding ceiling for mutual funds is getting absorbed by interested buying. This indicates that the stock, which was weighed down by concerns regarding the merger, is likely to do well post merger," Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said.
This will help Bank Nifty also to move higher, he added.
On June 27, HDFC also acquired 1.49 crore equity shares, or 0.69 percent, in HDFC Life Insurance via open market transactions at an average price of Rs 667.1 per share, which amounted to Rs 992.64 crore. HDFC Life was quoting at Rs 659.65, lower by 1.1 percent, at 12 pm after surging over 5.8 percent in previous session.
The move is in-line with RBI and CCI nod for HDFC acquiring over 50 percent in the insurer. Last year, the management had explained that a higher stake would also mean higher cross-sell.
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