It was another day of panic in shares of finance companies and banks, with investors dumping shares of these outfits once again.
Shares in Indiabulls Housing Finance Company was down a huge 13 per cent at 2.55 pm, with the stock hitting the lower circuit filter and than breaching the Rs 800 levels. It was last trading at Rs 793, down 12.60 per cent.
Shares in DHFL were down more than 11.72 per cent at Rs 237, while L&T Finance Holding was down 6 per cent, as investors sold into NBFCs again.
In fact, India Bulls housing Finance reported a good set of quarterly numbers and many brokerages have raised their target price on the stock. The company reported a profit after tax (PAT) was Rs 861.3 crore during July-September quarter of 2017-18.
Most brokerages have suggested a "buy and "outperform" on the stock. According to Bloomberg reports, the crash in the share price of Indiabulls Housing Finance had largely to do with its exposure to Supertech Ltd. This may have resulted in selling across the bard, as even bank stocks were not spared with PNB, down a huge 4 per cent and Union Bank down almost 5 per cent.
In the past liquidity issues have come to the fore and investors have dumped NBFC stocks. In fact, companies like DHFL and Indiabulls Housing Finance have time and again clarified that they have adequate liquidity.