Sensex up over 150 pts, Nifty eyes 10,000; Bharat Fin, IndusInd gain
Equity benchmarks started off the week on a positive note, after a consolidation seen in previous week.
The 30-share BSE Sensex was up 183.49 points at 31,871.01 and the 50-share NSE Nifty gained 51.50 points at 9,986.30.
Bank of Baroda, Tata Motors, IndusInd Bank, L&T, Tech Mahindra and Reliance Industries were early gainers while Vedanta, Tata Steel, Tata Power and Power Grid were early losers.
Nifty Midcap 100 and BSE Smallcap indices outperformed benchmarks, rising 0.7 percent each on strong breadth. About five shares advanced for every share falling on the BSE.
Shares of IndusInd Bank and Bharat Financial Inclusion rose 1-2 percent in early trade as investors reacted to developments around a possible deal between the two entities.
Early on Monday, the private sector lender informed exchanges that it had entered into an ‘exclusivity agreement’ with the micro lender in a bid to explore a merger or expansion plans.
The transaction between the two companies would be subject to due diligence, agreement on the appropriate on the appropriate transaction structure, definitive documentation and Board, shareholders, regulatory, NCLT and other third-party approvals, as applicable, the release said.
The release also indicates that the deal is likely in its final stages, said SP Tulsian of sptulsian.com adding that the swap ration will be most important thing to look at.
According to a source-based report, the swap ratio being considered is one share of IndusInd Bank for 1.75 shares of Bharat Financial. A deal is likely to be announced by the end of September.
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