Foreign Investors Buy DHFL, Indiabulls Housing Finance Shares After Rout
The recent rout made the two worst-hit housing finance stocks attractive for foreign investors.
Of the top six mortgage lenders by market value, foreign portfolio investors increased stake sequentially in only Dewan Housing Finance Corporation Ltd. and Indiabulls Housing Finance Ltd. in the quarter ended September.
FPI holding in Dewan Housing rose to 19.43 percent from 18.2 percent three months earlier, according to its exchange filing. Their stake in Indiabulls Housing Finance increased to 55.52 percent during the period from 54.34 percent.
Shares of Dewan Hosing and Indiabulls Housing Finance have fallen nearly 62.1 percent and 24.3 percent, respectively, since June 30, according to Bloomberg data. The latest slide in stock prices came after defaults at IL&FS group companies triggered a liquidity crunch for non-bank lenders in September.