Shares of Housing Development Finance Corp Ltd (HDFC) rose to Rs 2,218.30 apiece on NSE on Monday. Experts suggest that the surge was on account of hopes of a rate cut ahead of RBI's monetary policy review meeting.
The Reserve Bank of India's Monetary Policy Committee (MPC) is scheduled to announce its decision following the review, on Thursday. In the last two policy reviews, the central bank had cut the repo rate by 25 basis points each.
The MPC, headed by RBI governor Shaktikanta Das, will meet on Monday for a 3-day meeting as experts predict another round of rate cut, a third consecutive one, to push economic growth, which fell to a five-year low in the last quarter of 2018-19, according to GDP data released on Friday.
Shares of HDFC group's non-banking finance arm opened higher at Rs 2,200 on Monday, when compared to Friday's close of Rs 2,182.65 on NSE.
Last week, on 29 May, the company said that it has disbursed subsidy amounting to over Rs 2,300 crore benefiting over 1,04,000 families under the Pradhan Mantri Awas Yojana (PMAY) credit linked subsidy scheme (CLSS). It also said that it has approved home loans worth Rs 22,136 crore under CLSS to home-buyers belonging to the economically weaker section (EWS), low income group (LIG) and middle income groups (MIG).