• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources

Group Sites

• The Hindu
• Business Line
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Virendra Verma

Mumbai , Dec. 7

AFTER banking sector stocks, non-banking finance companies' (NBFCs) stocks have now attracted the attention of stock market players.

Analysts say stocks in this sector have not performed in the current rally, even as the business has grown steadily for NBFCs.

Stocks, which are seen in action, are mainly into financing of automobiles and personal loans.

The stocks that are witnessing buying activity include Birla Global Finance (up 9.74 per cent at Rs 64.25 on the BSE), Cholamandalam Investment (up 5.45 per cent at Rs 67.70), GE Capital Transport (up 0.50 per cent at Rs 50), Shriram City Union Finance (up 11.34 per cent at Rs 31.90), Shriram Investment (up 8.16 per cent at Rs 34.45) Shriram Transport (up 3.24 per cent at Rs 33.50) and Tata Finance (up 6.83 per cent at Rs 48.50).

Brokers said most of these companies are doing good business mainly due to a strong client base in their respective area of operations.

"Several NBFCs have been financing trucks and tractors. They now have a stronghold in this area; this segment is growing and their stocks should do well," said a top official of a domestic broking firm.

Moreover, the rules governing the NBFC sector have also become stringent and only serious players are present in the market, he said.

"There was a time when the banking sector was also not considered very good for investment. But see this sector now. I believe in the next few quarters, the NBFC sector would be seen in a similar manner," the official added.

Another factor for the interest in NBFC stocks is that they have a strong parent company backing them and most of them have a consistent dividend payment record.

More Stories on : Stock Markets | NBFCs

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
India Advantage Fund buys Nagarjuna shares

Copyright © 2004, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line