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Financial shares mainly non-banking financial companies (NBFCs), micro-finance institutions (MFIs) and housing finance companies (HFCs) were in focus, trading higher by up to 9% on the BSE.
Can Fin Home Finance, Bharat Financial Inclusion, Muthoot Finance, Repco Home Finance, Manappuram Finance, Srei Infrastructure Finance, Dewan Housing Finance (DHFL), Bajaj Finance and Mahindra & Mahindra Financial Services were up between 4% and 9% on the BSE. At 11:42 am; the S&P BSE Sensex was up 0.65% at 26,521 points.
The Reserve Bank of India (RBI) Governor Urjit Patel on Monday said that all necessary actions are being taken to 'ease the genuine pain of citizens' with a clear intent to normalise the things as early as possible.
"Liquidity in the banking system has increased and so credit should be becoming more easily available. The intent is to normalise as soon as possible." CLICK HERE TO READ FULL REPORT.
Most of these stocks fell up to 25% since November 8, after the government decided to withdraw Rs 500 and Rs 1,000 notes.
According to Religare Institutional Research, “the cash shortage will last for 1-2 months from the date of demonetisation. RBI regulatory forbearance will ease near-term loan management for borrowers and lenders. Therefore, asset quality and growth-related troubles could be temporary or may not even enter the books given the relaxed norms.”
NBFCs are still trading at rich valuations despite a 20-30% correction since 8 November. This correction factors in only a temporary slowdown and resultant asset quality and growth issues for six months to a year, rather than the larger long-term consequences, the brokerage house said in a report dated November 25.
Can Fin Home Finance, Bharat Financial Inclusion, Muthoot Finance, Repco Home Finance, Manappuram Finance, Srei Infrastructure Finance, Dewan Housing Finance (DHFL), Bajaj Finance and Mahindra & Mahindra Financial Services were up between 4% and 9% on the BSE. At 11:42 am; the S&P BSE Sensex was up 0.65% at 26,521 points.
The Reserve Bank of India (RBI) Governor Urjit Patel on Monday said that all necessary actions are being taken to 'ease the genuine pain of citizens' with a clear intent to normalise the things as early as possible.
"Liquidity in the banking system has increased and so credit should be becoming more easily available. The intent is to normalise as soon as possible." CLICK HERE TO READ FULL REPORT.
Most of these stocks fell up to 25% since November 8, after the government decided to withdraw Rs 500 and Rs 1,000 notes.
According to Religare Institutional Research, “the cash shortage will last for 1-2 months from the date of demonetisation. RBI regulatory forbearance will ease near-term loan management for borrowers and lenders. Therefore, asset quality and growth-related troubles could be temporary or may not even enter the books given the relaxed norms.”
NBFCs are still trading at rich valuations despite a 20-30% correction since 8 November. This correction factors in only a temporary slowdown and resultant asset quality and growth issues for six months to a year, rather than the larger long-term consequences, the brokerage house said in a report dated November 25.
| COMPANY | LATEST | PREV CLOSE | GAIN(%) |
| CAN FIN HOMES | 1660.80 | 1522.50 | 9.08 |
| BHARAT FINANCIAL | 732.05 | 680.50 | 7.58 |
| MUTHOOT FINANCE | 304.60 | 285.70 | 6.62 |
| DEWAN HSG. FIN. | 253.75 | 240.80 | 5.38 |
| REPCO HOME FIN | 611.90 | 582.60 | 5.03 |
| BAJAJ FIN. | 922.85 | 878.70 | 5.02 |
| SREI INFRA. FIN. | 80.65 | 77.10 | 4.60 |
| YAMINI INVEST | 32.00 | 30.60 | 4.58 |
| EDELWEISS.FIN. | 104.25 | 99.80 | 4.46 |
| MANAPPURAM FIN. | 75.60 | 72.40 | 4.42 |
| M & M FIN. SERV. | 301.85 | 290.00 | 4.09 |
| CAPITAL FIRST | 572.05 | 551.85 | 3.66 |
| SHRI.CITY UNION. | 1922.20 | 1863.35 | 3.16 |
