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Today On Market Wrap: 1. ICICI Bank hits all-time high on hopes of strong Q3 numbers 2. Gruh Finance tumbles 16% on unfavourable share swap ratio 3. Sensex gains 131 pts, Nifty ends at 10,802; banks, pharma rise
The domestic equity market ended in the positive territory for the third straight day on Tuesday, aided by supportive global cues and buying in heavyweights such as ICICI Bank, SBI, Axis Bank and Sun Pharma. The S&P BSE Sensex gained 131 points or 0.36 per cent to settle at 35,981 with Sun Pharma (up 4 per cent) being the top gainer and Kotak Mahindra Bank (down over 1 per cent) the worst performer.
The broader Nifty50 index of National Stock Exchange (NSE) reclaimed the crucial 10,800 level to end at 10,802, up 30 points or 0.28 per cent with 24 components advancing and 26 declining.
In the broader market, the S&P BSE Midcap index ended at 15,127, down 25 points or 0.16 per cent, while the S&P BSE SmallCap index signed off the day 24 points or 0.17 per cent higher at 14,625.
Shares of ICICI Bank ended at a record high of Rs 381.60 apiece on BSE, up 3.46 per cent. The stock surpassed its previous high of Rs 375.25 touched on November 16, 2018, in an otherwise subdued market today.
During the past four weeks, the stock of private sector lender has outperformed the market by surging 9.5 per cent on hopes of strong earnings in October-December quarter (Q3FY19). In comparison, the S&P BSE Sensex gave 2 per cent return during the same period.
Analysts expect ICICI Bank to report strong results for Q3 quarter, thereby supporting further re-rating.
Shares of Gruh Finance tanked 16.39 per cent to Rs 256 apiece, after it announced amalgamation with Bandhan Bank in an all-stock deal.
According to the share swap ratio, for every 1,000 shares of Gruh Finance shareholders will get 568 shares of Bandhan Bank. This is around 7 per cent discount to the closing price of Gruh Finance as of Monday (January 7, 2019).
Gruh Finance, promoted by the country's largest mortgage firm HDFC, is into financing of affordable housing segment. HDFC owns 57.86 per cent in Gruh Finance as on September 30, 2018.
Sectorally, PSU bank stocks gained the most followed by pharma and private sector lenders. The Nifty PSU Bank index soared 2.77 per cent to end at 3,195, with all the 12 components ending in the green.