Financial stocks in focus; PNB Housing, DHFL, HDFC up over 5%

Indiabulls Housing, UCO Bank, JM Financial Services, Repco Home Finance, HDFC, IndusInd Bank, Edelweiss Financial Services and Bharat Financial Service were up more than 4%.

Shares of financial stocks including banks, housing finance and non-banking finance companies were in focus, rallying up to 12% on the bourses in intra-day trade erasing their entire early morning losses. Nifty Financial Services and Nifty PSU Bank indices were up 2% each as compared to 1.4% rise in the Nifty 50 index. Nifty Bank and Nifty Private Bank were up 1% each on the NSE.

PNB Housing Finance, Dewan Housing Finance Corporation (DHFL), Indiabulls Housing Finance, UCO Bank, JM Financial Services, Repco Home Finance, Housing Development Finance Corporation (HDFC), IndusInd Bank, Edelweiss Financial Services and Bharat Financial Services were up in the range of 4% to 12% on the BSE. In comparison, the S&P BSE Sensex was up 1% or 343 points at 34,234 at 02:21 PM.

According to media reports, the Prime Minister’s Office has called for a meeting of the chiefs of leading commercial banks Friday. The meeting is expected to discuss several aspects impacting liquidity in the financial markets. It is likely that the government may unveil certain measures to inject liquidity in the banking system and ease some pressure on the public sector banks, Indian Express reported.

Business Standard reported, RBI Governor Urjit Patel may not resign as he has called a board meeting on November 19 to discuss the pending issues, which created a rift between the government and the central bank, in the previous meeting held last week. The finance ministry said on Wednesday that it respects the central bank's autonomy.

The ministry said that both the government and the RBI “have to be guided by public interest and the requirements of the Indian economy.” The government and the RBI have had disagreements on a host of issues recently which include easing capital adequacy norms for public sector banks, bringing some of them out of PCA, forbearance for the MSMEs and liquidity situation in NBFCs, added the report. CLICK HERE TO READ FULL REPORT

Among the individual stocks, PNB Housing Finance has rallied 12% to Rs 824 after the company said it has successfully raised Rs 24.50 billion through Commercial Papers (CP). This is in addition to Rs 17.75 billion raised earlier in October totaling to Rs 42.25 billion of CPs raised in October 2018. The CPs were placed with various mutual funds and banks.

This will boost the overall sentiments in the sector as such deals will help build the momentum and strengthen investor confidence. We are thankful to various lenders for placing their funds in our Company, said Sanjaya Gupta, Managing Director, PNB Housing Finance.

DHFL was up 9% to Rs 225, extending its previous day’s 12% surge after the company proposes to issue secured redeemable non-convertible debentures amounting of Rs 7.5 billion plus a greenshoe option up to Rs 7.5 billion on private placement basis. The issue will open on Thursday, November 1, 2018.

COMPANY	LATEST	PREV CLOSE	GAIN(%)
DHANLAXMI BANK	15.05	13.02	15.59
PNB HOUSING	798.00	731.20	9.14
INDIABULLS HOUS.	837.85	769.20	8.92
UCO BANK	19.15	17.80	7.58
DEWAN HSG. FIN.	222.70	207.40	7.38
BF INVESTMENT	241.40	227.05	6.32
JM FINANCIAL	76.00	72.00	5.56
H D F C	1756.30	1672.80	4.99
EDELWEISS.FIN.	162.05	154.35	4.99
IL&FS INV.MANAG.	8.22	7.83	4.98
POWER FIN.CORPN.	95.90	91.45	4.87
RELIANCE NIP.LIF	167.50	159.80	4.82
IIFL HOLDINGS	454.40	433.75	4.76
MANAPPURAM FIN.	79.45	75.85	4.75
CORPORATION BANK	27.00	25.80	4.65
ORIENTAL BANK	80.25	76.95	4.29
INDUSIND BANK	1422.00	1363.50	4.29
REPCO HOME FIN	358.40	343.95	4.20
BHARAT FINANCIAL	872.85	837.75	4.19
UNITED BANK (I)	11.30	10.87	3.96