Nischint Chawathe positive on housing finance space

Nischint Chawathe, Senior Analyst at Kotak Institutional Equities told CNBC-TV18, "Very broadly as far as the housing finance space is concerned we have a very positive view on this space per se. There are two things from a structural point of view, you will have fairly strong growth in this space over next ten years given the fact that there is fairly large unmet demand and from a cyclical point of view we have seen interest rates falling, you have seen borrowing cost coming down massively for housing finance companies, which is exactly the reasons where you will see expansion in their spreads. More importantly maybe your spreads may not expand, a part of it could be passed on but from a competitive point of view you are much better positioned in banks at this point of time, which is exactly the reason we would, we are bullish on the space per se."

At 13:42 hrs Indiabulls Housing Finance was quoting at Rs 609.35, down Rs 10.65, or 1.72 percent. It has touched a 52-week high of Rs 639.60.