Sensex rallies over 1,100 points to reclaim 50,000-mark as JSW Steel completes Bhushan Steel deal
On Friday, JSW informed the stock exchanges about the resolution plan, including a payment of Rs 19,350 crore to Bhushan’s creditors.
Equity markets soared on Tuesday with benchmark indices Sensex and Nifty gaining 2.3% each as metal and bank stocks rallied after JSW Steel finalised the purchase of its bankrupt rival Bhushan Steel and Power. The 30-share BSE index gained 1,128.08 points and reclaimed the 50,000-mark to close at 50,136.58. The broader 50-share NSE index, meanwhile, finished at 14,845.1, gaining 337.80 points.
On Friday evening, JSW Steel had informed the exchanges that it had completed a resolution plan for Bhushan Steel and Power, including a payment of Rs 19,350 crore to its financial creditors. JSW Steel gained over 5% in Tuesday’s trade to finish close to its 52-week high. On Tuesday, the markets received a boost due to the deal after remaining closed for the weekend and on Monday due to Holi. As a result, the Nifty Metal sub-index rose 2.79% in Tuesday’s trade.
Major lenders to Bhushan Power and Steel, including State Bank of India, Punjab National Bank and Canara Bank, gained more than 1% each and ICICI Bank rose 2.3%. The Nifty Bank sub-index gained 1.67%.
“There is good amount of buying in financials and buying continues in the metals too,” Saurabh Jain, Assistant Vice President of Research at SMC Global Securities, told Reuters. “These resolutions kind of give a lot of positivity to the markets when they come in.”
The uptick in bank and metal stocks spilled over into other sectors too, as all other sub-indices also finished with gains. Information Technology sector stocks like HCL Tech and Infosys and FMCG companies like Hindustan Unilever and Nestle were among the top gainers. Axis Bank, Bharti Airtel and Mahindra & Mahindra were among the rare stocks that faced losses.