Indiabulls Housing Finance (IBH) shares fell nearly 10 per cent on Friday after rating agency Moody’s Investors Service downgraded its corporate family rating to “Ba2” from “Ba1” and changed its outlook to negative from stable. The downgrade reflects renewed pressure on the cost and availability of funds for IBH, Moody’s said in a statement on Wednesday. “The outlook has been changed to negative to reflect the possibility that the tight funding conditions may persist for some time, which could further pressure other aspects of IBH’s credit profile, such as profitability and asset quality,” it said.
On the National Stock Exchange (NSE), Indiabulls Housing Finance shares opened lower at Rs 521.50 apiece and dropped to as much as Rs 498.00 apiece in morning deals, marking a decrease of 9.67 per cent. On the Bombay Stock Exchange (BSE), the share price of the company declined as much as 9.66 per cent to touch the Rs 498 mark at the day’s lowest point.
At 10:34 am, shares of the finance company traded 8.50 per cent lower at Rs 504.45 apiece on the BSE. On the NSE, the shares of IBH traded 8.54 per cent lower at Rs 504.25 apiece.
Domestic stock markets, meanwhile, were trading on a lower note, amid losses in Asian peers. The S&P BSE Sensex index lost as much as 337.12 points to touch 36,974.41 on the downside in early trade, and the broader NSE Nifty benchmark declined to 10,924.30, down 105.1 points from the previous close.
Earlier this month, Indiabulls Housing Finance reported a net profit of Rs. 801.53 crore for the April-June period, marking a fall of 24 per cent over the corresponding period a year ago.
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Source: NDTV Profit