Saturday, 10 October 2020

Can Fin Homes: A sharp rebound from the lower band of the rising channel [Flickr]

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Can Fin Homes: A sharp rebound from the lower band of the rising channel

The News. October 9, 2020. Shaktikanta Das, Reserve Bank of India (RBI) Governor announced some good news for Can Fin Homes like housing finance companies:

The Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 4 per cent.The MPC will continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and next year.The Marginal Standing Facility Rate and bank rate remains unchanged at 4.2 per cent and the reverse repo rate stands unchanged at 3.35 per cent.

After the RBI declared the monetary policy, shares of nearly all housing finance companies - LIC HFL, GIC HF, Repco Home, Can Fin Homes, M&M Finance, IndiaBulls HF - started to surge. It seems the decision to maintain the repo rate and reverse repo rate was warmly welcomed by the sector. Most developers and consultants feel that the RBI's move to rationalise risk weightage on home loans and link housing loan risks to loan to value is expected to make more credit available to borrowers, bring down the cost of funds to buyers and improve demand for homes.

Also Read: Government investigations into Jet Airways could derail revival plan

Case Study. Can Fin Homes: A sharp rebound from the lower band of the rising channel offers fresh entry opportunity for investors.

The share price of Can Fin Homes (CANHOM) has outperformed its NBFC peers. moneyinvestors.in/can-fin-homes/



source https://www.flickr.com/photos/165450454@N07/50447699163/

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