 "HDFC hits record high")
Shares of Housing Development and Finance Corporation (HDFC), the country's largest mortgage financier, has gained 4% to Rs 1,228, also its record high on the National Stock Exchange (NSE).
In past four trading sessions, the stock has rallied 10% from Rs 1,120 on January 14, 2015, after the Reserve Bank of India (RBI) in a surprise move on Thursday cut the repo rate by 25 basis points to 7.75%. The benchmark CNX Nifty gained 4% during the same period.
Analyst at BESI Research re-iterates ‘buy’ rating on the stock with target price of Rs 1,400 per share.
“We expect the stock to bounce back given the market expectation of a rate cut, expectations of government incentives for the housing sector in the coming budget, easing of competitive intensity in FY16 and potential consensus upgrades for insurance subsidiaries as the government ordinance on Insurance Amendment Bill should pave the way for more deals and provide a valuation benchmark,” analyst said in a report dated January 8, 2015.
In past four trading sessions, the stock has rallied 10% from Rs 1,120 on January 14, 2015, after the Reserve Bank of India (RBI) in a surprise move on Thursday cut the repo rate by 25 basis points to 7.75%. The benchmark CNX Nifty gained 4% during the same period.
Analyst at BESI Research re-iterates ‘buy’ rating on the stock with target price of Rs 1,400 per share.
“We expect the stock to bounce back given the market expectation of a rate cut, expectations of government incentives for the housing sector in the coming budget, easing of competitive intensity in FY16 and potential consensus upgrades for insurance subsidiaries as the government ordinance on Insurance Amendment Bill should pave the way for more deals and provide a valuation benchmark,” analyst said in a report dated January 8, 2015.