DHFL, LIC Housing, Manappuram Finance, L&T Finance hit record highs

Dewan Housing Finance Limited (DHFL), LIC Housing Finance, Manappuram Finance, L&T Finance Holdings, GIC Housing Finance, and Indian Hume Pipe were among 37 stocks from the S&P BSE BSE500 and S&P BSE Smallcap index which hit their respective lifetime highs after the benchmark Sensex closed nearly 2% higher on Tuesday.
Aarti Industries, Essel Propack, GHCL, Force Motors, Film Industries, Jubilant Life Sciences, Kajaria Ceramics, Lumax Industries, Motilal Oswal Financial Services, and TVS Motor Company were among others that hit new highs today.
The S&P BSE Sensex and the NIfty50 index gained 2% each and closed at 28,051 and 8,678 levels, respectively.
Financial shares, including banks, non-banking financial companies (NBFC), and housing finance companies (HFC), were in focus, which ended higher by up to 6% on the bourses.

Nifty Financial Services (up 2.8%), Nifty Private Bank (2.3%), Nifty Bank (2.2%), and Nifty PSU Bank (2%) gained in a range of 2% to 3%, as compared to a 1.9% rise in the benchmark Nifty50 index.

On Tuesday, the global rating agency Moody said that the draft bill to establish a new regime for resolving troubled banks in India is credit-positive and will help enhance the overall stability of the financial system.

It is an important step toward establishing a comprehensive framework for resolving financial firms. “Currently, the resolution of financial firms in India is based on minor parts of legislation enacted for other purposes,” said Srikanth Vadlamani, Moody’s Vice President and Senior Credit Officer.

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“The beginning of a three-day GST council meeting to finalize the tax rate triggered positivity, resulting in short covering across the board. The recent Essar deal has also raised hope among the bankers as most are struggling with the issue of non-performing assets (NPA),” said Jayant Manglik, President of Retail Distribution, Religare Securities.

“Banking and financial stocks lifted the mood after the Essar Oil deal, which eased some NPA worries. The low inflation and expectations of further easing by RBI have also changed the sentiment in the market,” said Vaibhav Agrawal (VP & Head of Research), Angel Broking.

“The market earlier saw nervousness over the geopolitical worries after the surgical strikes happened; however, there is no escalation, so this is also a rebound from the earlier decline. We see a strong market going forward as festive demand remains solid,” he added.

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Indian Hume Pipe zoomed 20% to Rs 804 after the company said the board would meet on October 26 to consider the issue of bonus shares to existing shareholders.

Meanwhile, the exchange data shows that 342 stocks were locked in the upper circuit filter on BSE.
Zuari Agro Chemicals, Zuari Global, Hindustan Organic Chemicals, Nath Bio-Genes (India), and Mangalam Seeds were 20% upper circuit BSE.

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