Budget 2020: Not a good time to bottom-fish HFC stocks, says fund manager

New tax regime may compound their growth pangs; shares didn't recover from post-Budget correction

At a time when housing finance companies (HFCs) are already grappling with weak demand and weak asset quality, particularly on the developer loan book front, the recently concluded Union Budget seems to have delivered another blow to the sector. The finance minister has introduced a new tax regime, which reduces the tax burden for individuals willing to let go tax benefits/exemptions. However, but it works against the developers and housing finance sectors, as one of main motivations to purchase property is for lucrative tax benefits – up to Rs 1.5 lakh for principal payment under Section 80 C and Rs