NBFCs' stocks freak out on bourses

Even as analysts are busy crunching numbers and trying to figure out the damage caused by the demonetisation move, shares of companies from various sectors are reacting differently to the development.

Market participants believe that Indian markets have already discounted the demonetisation impact and are now looking forward to the development on GST, US Fed rate hike, Italy Referendum, Interest rate cut by RBI and Budget announcements.

Several of the NBFCs are showing traction in Tuesday’s trade. With stocks like Muthoot Finance taking the lead in terms of intraday gains followed by Bharat Financial Inclusion, L&T Finance Holdings and Equitas holdings Ltd., these NBFCs are up by anywhere between 2 per cent to 7 per cent.

It is worth noting that these NBFC players have been hammered the most since demonetisation and are down up to 20 per cent since the announcement.

Nifty financial services index in the mean time has registered negative returns of 7 per cent in the similar period. On a YTD basis however the index which tracks the performance of the financial services sector has delivered 6 per cent returns.