Talking about the big selling pressure seen in housing finance and NBFC stocks, Mihir Vora, director and CIO, Max Life Insurance said the companies were suffering due to "rumour mongering".
"It looks like bit of a confidence issue because there is nothing specific that we have heard...," he said.
“As far as this segment is concerned there is huge room for growth and there is enough pricing power,” Vora added.
Stating that the system had failed due to lack of trust, he said, "When the trust in the system gets broken- that is most important to protect and sometimes leads to this kind of situations because the financial system works on the concept of liquidity ... so there is need for smooth working of the system."
In general, the house has been underweight on NBFCs for the past few months mainly because of valuations and not because of any fundamental issues but there is enough growth available in the sector, Vora further mentioned.