Shares of housing companies made significant losses in trade on Thursday. Indiabulls Housing Finance fell nearly 10 percent to Rs 379.15 while shares of PNB Housing Finance touched its new all-time low of Rs 594 apiece.

LIC Housing Finance shares fell by 3 percent to touch an intraday low of Rs 376.20 while Reliance Home Finance closed 4.46 percent lower. Shares of Housing Development Finance Corporation (HDFC), Can Fin Homes Ltd and DHFL also saw a one to two percent decline in value.

In a bearish market, shares of the sector fell over continued concerns of low-level growth and asset quality concerns.

Brokerage JP Morgan has placed an 'underweight rating' on LIC Housing Finance, whose shares have fallen 27 percent in the last two months.

"Core growth in the individual mortgage segment is decent, but we await higher competitive intensity from public sector banks (PSBs) that could imply limited pricing power here. Core growth at LIC Housing Finance in the individual segment has fallen off over a period of time, and revival here will be key for us to turn constructive," it said in its note.

The brokerage also pointed at the housing finance company's elevated asset quality issues in its high-yield developer book and increasing non-performing lending (NPL) trends in its loans against property (LAP) book.