Shares of HDFC Bank, HDFC and HDFC Life were all in the green in early trade on Wednesday. HDFC Life share price also hit a new 52-week high of ₹649.60
What Happened: The uptick comes as India’s completion watchdog approved the proposal that the merged entity can increase its stake in the group’s insurance units. In a regulatory filing, HDFC Life informed that Competition Commission of India in its meeting held on June 20, has granted its approval for HDFC Limited to increase its stake in HDFC Life and HDFC Ergo to more than 50%.
The stocks received another positive boost as global research firm Goldman Sachs reinstated its “buy” call on HDFC Bank with a price target of ₹2,050. The research firm said that the bank will emerge strong after the merger. The firm added that the merged entity will have a strong balance sheet and superior profitability. The firm sees the company’s earnings grow by 18% over FY23-FY26.
The developments helped the three stocks continue making gains for the fourth straight session.
Price Action: HDFC share price was up 0.32% to trade at ₹2,667.15. HDFC Bank’s share price was up 0.41% to trade at ₹1,614.15. HDFC life share price went up 0.55% to trade ₹647.25 as the markets opened on Wednesday.
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