Disc: No holding here.
I don’t think this fall is ordinary by any means and keep in mind that it did not make decent recovery despite management call. Are we saying that such large sellers fool enough to panic like that?
I have heard strong rumours that RBI will focus its lens on abuse of LAP loans and related NPAs and that’s why HFCs were particularly punished. We need to keep in mind that HFCs had corrected already so it can’t be valuation. There are also rumours of collusion between RE developers and HFCs to keep ever greening of loans. These might not materialize but the way Yes Bank has been treated anything could happen. Keep in mind that IL&FS loans were AA rated few months back and became DD suddenly so regulator is in overdrive to take out all weak spots in the financial system. Market perception of DHFL has never been great so punishment was coming. One thing is certain that this is not technical sell off and rest will be known later.