HDFC hits new high; stock surges 8% in two days

The stock surged 14% from its recent low of Rs 973 touched on July 17, on National Stock Exchange.

Shares of the country’s largest mortgage lender Housing Development Finance Corporation (HDFC) have rallied 4% to Rs 1,105, extending its previous day’s nearly 4% gain, on the National Stock Exchange (NSE). Currently, the stock is trading at its lifetime high on the bourses.

There is amid speculation of a possible merger of HDFC and HDFC Bank. However, the managements of HDFC and HDFC Bank have denied any merger talks.

HDFC stock has outperformed the market by surging 14% from recent low. The stock hit low of Rs 973 on July 17, after the Reserve Bank of India (RBI) said banks didn't have to maintain cash reserve ratio (CRR) and statutory liquidity ratio (SLR) for funds raised through long-term bonds to fund infrastructure and affordable housing. The benchmark CNX Nifty gained 0.5% during the same period.

While answering shareholder queries on the merger at HDFC's annual general meeting on July 21, Chairman Deepak Parekh dismissed any immediate move on this front. "The board of directors of both companies has met, but the merger proposal hasn't been considered yet. As a result, it will be too premature to say anything."