NBFCs slump; Manappuram Finance, Bharat Financial down over 10%

Shares of non-banking financial companies (NBFCs) including micro finance institutions (MFIs) and housing finance companies (HFCs) witnessed selling pressure falling by upto 20% on BSE in intra-day trade extending their past three trading day’s decline after the government’s move to withdraw Rs 500 and Rs 1,000 notes Stock Market Astrology Tips

Manappuram Finance, Can Fin Homes, Shriram City Union Finance, Bharat Financial Inclusion, Muthoot Finance, Capital First, JM Financial, GIC Housing Finance, Gruh Finance, Dewan Housing Finance (DHFL), Bajaj Finance and Bajaj Finserv were down 5% to 20% on the BSE.

“The recent move by Government of India to demonetize the Rs 500 and Rs 1,000 currency notes is expected to significantly deter the mailpractices supported by cash economy and fake currencies,” DHFL said in a statement.

“While the medium to long term benefits of this move to the economy at large and the real estate sector in particular are indisputable. DHFL expects some short term challenges. It is expected that cash-flows of the households, particularly the self-employed category, may be impacted for some time due to withdrawal of 86% of the currency from the system until normalcy is restored and business align themselves to the non-cash mode of payments including electronic payments. We expect that this transition may happen in next couple of months,” it added.

AK Prabhakar, Head of Research at IDBI Capital said the outlook for NBFC stocks will remain negative for one to two quarters Astrology and Numerology Trading Tips

“The business of NBFC companies has come under pressure as small businesses, that depend on these companies for funds, have been badly hit on account of demonetisation of Rs 500 and Rs 1000 notes,” he said.