Shares of home finance provider HDFC surged to a record high on Thursday afternoon, amid a choppy session in the stock market.
Shares of home finance provider HDFC surged to a record high on Thursday afternoon, amid a choppy session in the stock market. HDFC share price gained by more than 2.2% to hit the day’s high at Rs 2,059. The rise is the share price comes even as central bank RBI cut the repo rate by 25 basis points to 6% in the first bi-monthly monetary policy meet of the fiscal year. The shares surpassed their previous high of Rs 2,051 hit on July 30th on BSE. Notably, the shares have been on a rising spree in the last one month, and gained by more than 11% in the period. In the last one year, the shares have returned more than 23% in the last one year alone.
In the previous quarter HDFC reported a net profit of Rs 2,113.80 crore on the standalone basis for the third quarter ended December 2018. The company had posted a net profit of Rs 5,300 crore in the October-December quarter of the last financial year. The profit numbers for the quarter ended December 31, 2018 are not comparable with that of the quarter ended December 31, 2017, HDFC Ltd said in a statement.
Notably, the RBI has also eased norms in a bid to improve liquidity. “We have allowed an additional 2 per cent of LCR to reckon as Level 1 high-quality liquid assets for the purpose of computing the LCR of the banks. While this move will harmonise the liquidity requirements of banks with LCR, it will also release additional liquidity for lending by banks,” RBI Governor Shaktikanta Das said after unveiling the first bi-monthly monetary policy for 2019-20.
According to Manoj Gaur of Guars Group the policy cut is likely to provide a boost to lending in the sector. “The second consecutive reduction shows positive signs which can surely enhance the demand for housing, marginally. Though the last cut wasn’t passed on to the consumers so we would have to wait and watch whether this time the consumers get the benefits or not”, says Manoj Gaur, MD, Guars Group said.