Shares of housing finance firms tumble on huge sell-off; DHFL nosedives 60%, NBFC companies try to allay fears

Shares of housing finance firms came crashing sharply Friday, with Dewan Housing Finance tumbling up to 60 percent on massive selling. The market recovered after representatives of some NBFC companies tried to allay fears on television interviews. DHFL told CNBC-TV18 that they had not defaulted any payments and the panic selling was a surprise.

The scrip of Dewan Housing Finance Corporation plummeted 59.67 percent to Rs 246.25 -- its 52-week low -- on BSE.

Among others, Indiabulls Housing Finance nosedived 35 percent, Gruh Finance tumbled 17.66 percent, Can Fin Homes plunged 14.55 percent, PNB Housing Finance tanked 9.23 percent.

Housing construction. Representational image. Reuters.

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The broader market also witnessed huge sell-off, with the BSE benchmark index crashing over 1,100 points within a matter of minutes during the afternoon trade.

The index had plunged 1,127.58 points, or 3.03 percent, to hit an intra-day low of 35,993.64. It, however, recovered nearly 900 points within minutes of the fall.

Among housing finance stocks, DHFL led the pack by tanking over 50 percent, followed by Indiabulls Housing Finance, Can Fin Homes, PNB Housing Finance and LIC Housing Finance cracking up to 17 percent.

---With PTI inputs