Shares of Max Financial Services soared 20 per cent to touch its highest trading permissible limit of the day as the company and Max Life Insurance will merge into HDFC Standard Life Insurance.

The stock zoomed 19.99 per cent to Rs 514.40 — its upper circuit limit — on the BSE.

On the NSE, it surged 20 per cent to touch its highest trading permissible limit of Rs 514.50.

Shares of HDFC too rose 1.99 per cent to Rs 1,225.25 on the BSE.

In the biggest-ever consolidation in the country’s private insurance sector, Max Life Insurance and Max Financial Services will merge into HDFC Standard Life Insurance.

“The board of directors of HDFC Standard Life Insurance Company, Max Life Insurance Company and Max Financial Services ... approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services into HDFC Life by way of a scheme of arrangement,” HDFC said in an NSE filing.

In a separate filing, Max Financial Services said the agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction.

The proposed arrangement would be subject to due diligence, definitive documentation and applicable board, shareholder, regulatory, respective High Courts/NCLT, and other third party approvals, as may be applicable, it added.

At present, 49 per cent FDI is allowed in the insurance sector in India.

Sugar stocks tumble

Sugar stocks today fell sharply by up to 10 per cent after the government imposed 20 per cent Customs duty on sugar exports.

Oudh Sugar Mills tumbled 9.63 per cent, Dwarikesh Sugar plunged 6.15 per cent and Bajaj Hindusthan slumped 5.5 per cent on the BSE.

Among others, shares of Shree Renuka Sugars dipped 4.95 per cent and Balrampur Chini Mills slipped 3.3 per cent.

The Government had yesterday imposed 20 per cent Customs duty on sugar exports to boost domestic supply and check prices which are ruling high at Rs 40/kg.

The move comes at a time when prices have surged sharply in various commodities, including tomato, wheat and pulses.

“To keep the domestic prices of sugar under check, the government has decided to impose export duty of 20 per cent on raw sugar, white or refined sugar,” the Finance Ministry had said in a release yesterday.

The duty has been imposed to restrict exports following a sharp rise in global prices. The duty is, however, lower than 25 per cent proposed by the Food Ministry.

India, the world’s second largest sugar producer after Brazil, has exported 1.6 million tonnes of sugar so far in the 2015-16 marketing year (October-September).

CIL shares jump

Shares of Coal India jumped as a government official has urged the use of local coal.

Coal India stock jumped as much as 2.16 per cent to Rs 314.20.

Coal Secretary Anil Swarup has called on power generating companies to stop importing coal and source it from Coal India instead, according to a government statement.

CIL stock is among the top percentage gainers on the broader NSE index.

The stock dropped 6.75 per cent this year as of Thursday’s close.

Bharti Infratel falls

Shares of Bharti Infratel fell as Goldman Sachs has downgraded the stock to “sell’’.

Bharti Infratel Ltd shares fell as much as 4.02 per cent to its lowest since January 14, 2015.

Goldman Sachs has downgraded the stock to “sell” from “neutral’’, and has cut the target price to Rs 307 from Rs 368.

The brokerage says consolidation in telecom industry could see reduced demand for new towers. It sees increased competition in mobile tower sector.

Goldman adds “active infrastructure sharing” by telecom firms will lead to “lower tenancy growth’’.

Five of the 29 brokerages covering the stock have rated it “sell” or lower, five “hold” and 19 “buy” or higher; their median price target is Rs 425, according to Thomson Reuters Eikon data.

The stock is down nearly 19 per cent this year as of Thursday’s close.

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