According to sources Dewan Housing Finance Corporation shares fell as much as 6.5% on Thursday, a day after the company said its chief executive Harshil Mehta had resigned. Reportedly Dewan Housing Finance shares opened lower at Rs. 104.00 apiece on the National Stock Exchange (NSE) and slumped to an intraday low of Rs. 103.95 in early trade, from their previous close of Rs. 111.20. Furthermore Dewan Housing Finance said the board accepted Mr. Mehta's resignation with effect from February 13, 2019.
Moreover on the Bombay Stock Exchange (BSE), Dewan Housing Finance shares fell as much as 5.9 per cent to Rs. 104 at their weakest point in morning. Apparently Non-banking financial companies such as DHFL have been in focus amid concerns about a cash crunch in the sector.
Reportedly a string of defaults at Infrastructure Leasing and Financial Service (IL&FS) had last year triggered sharp falls in the stock and debt markets, amid fears of contagion spreading to the rest of the financial sector.