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NBFCs, housing finance shares extend Friday’s losses as heavy selling grips the sector

NBFCs, housing finance shares extend Friday’s losses as heavy selling grips the sector

NBFCs, housing finance shares extend Friday’s losses as heavy selling grips the sector
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By CNBC-TV18 Sept 24, 2018 2:19:53 PM IST (Updated)

Nifty Fin Service has declined by 2.87 percent, shedding over 310 points, to trade at 10,547.

Shares of most non-banking finance companies and housing finance companies extended Friday's losses despite the Reserve Bank of India assuring that it was closely monitoring the markets along with the Securities Exchange Board of India(SEBI).

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The stocks had slumped on Friday after DSP Mutual Fund sold a large quantum of commercial papers of the Dewan Housing Finance Company Ltd at a steep discount, which stoked fears of a liquidity crunch. DHFL shares tanked over 50 percent that day, spooking investor sentiment across the sector.
Though DHFL shares gained in trade on Monday, the sector overall remained depressed with all 20 stocks listed on the Nifty Fin Service index declining. The index has declined by 2.87 percent, shedding over 310 points and was trading at 10,547 at 1.08 pm.
Investors are jittery on the sector after the default by Infrastructure Leasing & Finance Services (IL&FS) over the weekend as many NBFC and housing finance companies hold stake in the firm. Higher crude oil prices and a weakening rupee amid escalation in the US-China trade war added to the concerns.
Indiabulls Housing Finance led the losers with more than 10 percent decline followed by Edelweiss Financial Services with 9 percent decline. Bajaj Finance fell 6.56 percent while IIFL dropped 6.44 percent.
Index heavweight HDFC slumped 5.25 percent. Cholamandalam, Repco, GIC Housing, Ujjivan, Indostar, L&T Finance, JM Financial, all dipped between 6 and 7.14 percent.
Meanwhile, the NSE Nifty50 was trading nearly 142 points lower, at 11,001, while the BSE Sensex dived by over 430 points to trade at 36,411.03.
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