A nearly 33 per cent growth in the third quarter net profit failed to enthuse investors of Housing Development Finance Corporation (HDFC),as the mortgage lender slumped by nearly 4 per cent on the Bombay Stock Exchange on rate hike concerns.
HDFC tanked 3.95 per cent to settle at Rs 641.55 a piece on the Bombay Stock Exchange. The scrip plunged by 4.25 per cent to close at Rs 639 on the National Stock Exchange. Over 56 lakh shares of the company were traded on the bourses.
HDFC today reported a 32.7 per cent jump in net profit to Rs 890.8 crore for the third quarter ended December 2010 against a net profit Rs 671.2 crore in the year-ago period,propelled by higher loan disbursal.
Marketmen said that the continuously rising inflation has increased the fears of interest rate hike by the Reserve Bank later this month,which is likely to hurt the growth of the company.
“December inflation rose to 8.43 per cent from 7.48 per cent last month. The high level of inflation may force the rate increases. Going by the context of other markets around the world,a rate increase is almost inevitable,” MAPE Securities Head of Research Kislay Kanth said.
The plunge in the HDFC counter was mainly responsible for the weakness in the 30-share benchmark,which plummeted by 322.38 points to close at 18,860.44.