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NBFC, HFC Stocks See Recovery

Sunil Fernandes

Shares in Non Banking Finance Companies (NBFCs) and also Housing Finance Companies (HFCs) saw recovery in trade today, following last week's hammering.

Shares in DHFL was up 5 per cent, L&T Finance Holdings was up 1.5 per cent, while India Bulls Housing Finance gained as much as 2 per cent in early trade.

Last week, saw severe hammering in the NBFC and HFC space after reports of a ratings downgrade on DHFL. The housing finance company was also reportedly delaying an interest rate payment.

However, the company has clarified that all dues are being paid. DHFL has in the past been selling assets to repay amounts owed to lenders.

Even banking stocks which had a large exposure to DHFL including the likes of SBI, Yes Bank and Union Bank saw a recovery in their share prices, as DHFL calmed nerves.

Meanwhile, shares in Jammu and Kashmir were locked at the lower end of the circuit filter of 20 per cent, after reports of raids. There are corruption allegations and also allegation of nepotism in appointments at the Bank.

The J&K Bank Chairman and Managing Director (CMD) Parvez Ahmed was removed from his post. The shares of the bank were last seen trading at Rs 48, down 20 per cent over Friday's close.

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