HDFC stock sees first downgrade by analysts since liquidity crunch

Nomura, on Tuesday, cut its recommendation from 'Buy' to 'Neutral' citing fair valuations

Housing Development Finance Corporation (HDFC), the mortgage giant and the most preferred non-banking financial company (NBFC) stock, witnessed its first rating downgrade by analysts on Tuesday. Nomura turned 'neutral' on the stock after being 'positive' since December 2017. The HDFC stock was marginally in the red due to this. The timing of the rating action is interesting as this is the first rating change for the stock since the liquidity crisis unfolded in September 2018.

On a year-to-date basis, the HDFC stock has risen 11 per cent. This has prompted analysts at Nomura to turn neutral on the stock. They say