Bank licence norms: NBFC stocks fail to fire up

With the RBI lifting the veil over fresh bank licensing norms, many NBFC stocks were in limelight in the morning trade today.

Surprisingly, shares of some of the NBFCs whose names were mentioned in the media as being candidates for entering the fray failed to fire up after the RBI notified the norms for new bank licences.

LIC Housing Finance , which has been mentioned as a possible candidate not only because of its visibility and reach but also because of its strong parentage, was up just Rs 5.25 at Rs 247.35. But the counter witnessed strong volume of trading of 3.91 lakh shares within the first 15 minutes of trading on the NSE. But the stock is down from its 52-week high of Rs 300.25 (share FV Rs 2) it had touched on January 2 this year.

Reliance Capital witnessed a surge in trading volume at 5.25 lakh shares. But the stock was up just Rs 7.95 at Rs 415.25 on the NSE. This stock too is down from its yearly high of Rs 507.95 it touched on January 7, 2013. L&T Finance Holdings , which too has been mentioned as a possible candidate for new bank licence, gained Rs 4.05 or 4.96 per cent to Rs 85.70.

Mahindra & Mahindra Financial Services jumped Rs 12.75 to Rs 211.55 with a trading volume of 9.08 lakh shares. This stock also is trading at a discount to its 52-week high of Rs 244.44 it touched on January 3.

Aditya Birla Nuvo , which straddles across the financial services sector having presence in life insurance, asset management, NBFC, private equity, broking, wealth management etc., also rose to Rs 1,090.15, a gain of Rs 23.25. The volume was strong at 35,759 shares. This stock too is off its 52-week high of Rs 1,190.65 it reached on January 23 this year.