Moneycontrol
Feb 22, 2013 06:50 PM IST | Source: Moneycontrol.com

Goldman Sachs downgrades HDFC to sell from neutral

Shares of Housing Development Finance Corporation (HDFC) fell nearly 3 percent on Friday after the research firm Goldman Sachs cut its rating on the stock to sell from neutral, on expectations that India's economy would recover at a modest pace and the prospect of rising competition.

Goldman Sachs downgrades HDFC to sell from neutral

Shares of Housing Development Finance Corporation (HDFC) fell nearly 3 percent on Friday after the research firm Goldman Sachs cut its rating on the stock to sell from neutral, on expectations that India's economy would recover at a modest pace and the prospect of rising competition.


Goldman also downgraded its target price on HDFC to Rs 740 from Rs 790.


The research firm expects rising competition in the housing finance sector to lead to a contraction in market share and compression in spreads.


At 10:37 hours IST, shares dropped 2.81 percent to Rs 792.45 on Bombay Stock Exchange.

(With inputs from Reuters)

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