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Margin impact to vary across NBFC segments; stocks remain under pressure

Firms with strong parent support, high asset re-pricing ability are better placed

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Shreepad S Aute Mumbai
Stocks of non-banking financial companies (NBFCs), including housing finance companies continued under selling pressure on a fifth trading session in a row. Even the primary market felt the heat, with Aavas Financiers’ initial public offering of equity getting relatively lower demand.

Analysts at Edelweiss Securities say incremental liquidity is likely to be expensive, with the recent downgrade of AAA-rated (which denotes highly safe instruments or companies in terms of default) IL&FS taking a toll on near-term margins and loan book growth of NBFCs. Also, companies having more short-tenure debt market borrowing (and close to maturity) would feel sharp pressure on

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First Published: Sep 27 2018 | 11:55 PM IST

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