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NBFC scrips stay cool to guidelines
Our Market Bureau
MUMBAI, Jan 2: Non-banking finance company (NBFC) stocks did not react to the stringent regulatory norms announced by the Reserve Bank of India (RBI) on Friday, except those of Alpic Finance and Sundaram Finance.The Alpic Finance scrip touched a high of Rs 25. An upper-end circuit- filter had to be slapped by the National Stock Exchange (NSE) to curb any further rise. The stock recorded a gain of 13.65 per cent over its previous day's close of Rs 22.70. Among top-notch NBFCs, the stock of Sundaram Finance also recorded a sharp recovery of over 3.27 per cent to close at Rs 247.50 on the NSE. Kotak Mahindra Finance continued to hover in the band of Rs 27 and Rs 29 to close at Rs 28.90. Lloyds Finance closed at Rs 12 -- up a meagre 3 per cent over its previous day's close of Rs 11.65. Most NBFCs continued to trade range-bound. The stock of 20th Century Finance closed at Rs 15.90, Reliance Capital at Rs 64.45 and Tata Finance, Rs 37. However, continous foreign institutional investors' (FII) selling at the
counter of Cholamandalam Finance saw the stock close lower at Rs 29. "The policies initiated by RBI has been quite stringent and is likely to have a negative impact on the cash-strapped NBFCs," commented a research analyst of an FII brokerage house. "The triple-A rated companies have been asked to refund excess public deposits collected by them by December 31. If the funds locked up with such NBFCs reach the investors, it is likely to be channelised into the stock markets, which might prove to be a boon to the illiquid primary markets," he added.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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