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Housing finance companies dip on profit booking

LIC Housing Finance, GIC Housing Finance, Dewan Housing Finance, Can Fin Homes and HDFC are down 2-4% on BSE.

SI Reporter  |  Mumbai 

Shares of housing finance companies are trading lower by up to 4% on the bourses on profit booking after the Finance Minister presented the Union 2015-16 in Parliament today.

LIC Housing Finance (4% at Rs 475), GIC Housing Finance (3% at Rs 243), Dewan Housing Finance (3% at Rs 495), Can Fin Homes (3% at Rs 609) and HDFC (down 2% at Rs 1,322) are trading lower in the range of 2-4% on the BSE.

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Most of these stocks that touched record high in early morning trade and have fallen by up to 9% from their intra-day high on BSE.

"Announced in the backdrop of strong domestic macroeconomic fundamentals and soaring expectations, 2015 is a fine inclusive balancing act. The boldly resorts to a higher fiscal deficit of 3.9% to enable provision for increased outlays on various rural initiatives, socio economic schemes, infrastructure needs and more so enhanced allocations to states as per the fourteenth Finance commission recommendations," said Girish Vanvari, National Head of Tax, KPMG in India.

The lack of fiscal space did not permit meeting of the popular expectations of increase in slabs and housing interest deduction for individuals or abolition or reduction of MAT (minimum alternate tax) for SEZs (special economic zone) and infra companies. But all in a fine balancing inclusive futuristic budget, he adds.

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First Published: Sat, February 28 2015. 14:26 IST