While in the pre-opening session on April 13, shares of Housing Development Finance Corporation Limited advanced, in the opening trade it continued to extend its losses.
The stock did not seem to cheer the latest shareholding pattern wherein it was announced that PBOC (China's central bank) has increased its stake in the bank in the quarter ended March. Usually, central banks through their sovereign wealth funds buy into company stocks.
The decline shall be on account of the negatives faced by the housing finance companies as well as NBFCs as their customers are not likely being given the moratorium benefit announced by the RBI.
So, there is threat to more NPAs from customers of these institutions amid lockdown.