NEW DELHI: Shares of a select non-banking financial companies (NBFCs) plummeted on Monday after the Reserve Bank of India in its policy meet on Friday said it may strengthen guidelines for such entities to avoid risks.
The central bank will tighten norms for NBFCs given that many are becoming systemically important and have a higher dependence on short-term sources like commercial papers and mutual funds, CLSA analysts said in a note.
Extending losing streak to a fourth consecutive session, shares of Dewan Housing Finance Corporation (DHFL) plunged over 16 per cent, touching its fresh 52-week low of Rs 229.20 on BSE today.
At 1:20 pm, shares of the company were trading at Rs 239.40 apiece, down 12.72 per cent.
The equity benchmark BSE Sensex was down 93 points at 34,284, while the NSE Nifty index was trading 21 points down at 10,296 at that time.
DHFL, incorporated in 1984, is a midcap company with a market cap of Rs 7,474.68 crore operating in the finance sector.
Shares of most non-banking financial companies (NBFCs) have been under pressure of late amid concerns of increased borrowing cost post the IL&FS fiasco.
Shares of Pioneer Invest Corp (down 17.99 per cent), India Cements Capital (down 13.58 per cent), Edelweiss Financial Services (down 12.82 per cent) and JM Financial (down 11.26 per cent) cracked over 10 per cent.
Amrapali Capital and Finance Services (down 9.91 per cent), Pankaj Piyush Trade & Investment (down 9.83 per cent), Elixir Capital (down 9.73 per cent), Magma Fincorp (down 9.58 per cent) and BLB (down 9.52 per cent) plunged up to 10 per cent.
Vedanta, Tata Steel and Wipro were among the top losers in the Sensex index.
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