Why Lic Housing Finance Share Falling

03 April 2024: LIC Housing Finance's share price has seen some decline recently, and there could be a few contributing factors to consider:

1. Q2 Results (July-September 2023): LIC Housing Finance reported a weak set of quarterly results in July 2023. This weakness might have included:
2. Decline in disbursements: This could indicate a slowdown in demand for home loans, impacting the company's core business activity.
3. Profitability concerns: A drop in net profit or a decline in net interest margin (NIM) could raise concerns about the company's future earnings potential.
4. Market Correction (March 2024): The broader Indian stock market, particularly the financial sector, might have undergone a correction in March 2024. This could lead to a decline in LIC Housing Finance's share price even if there's no company-specific negative news.
5. Rising Interest Rates:  If interest rates are on the rise in India, this could dampen demand for home loans as borrowing becomes more expensive. This could impact LIC Housing Finance's business.
6. Increased Competition: The housing finance sector in India is quite competitive. Increased competition from other lenders offering attractive rates or schemes could put pressure on LIC Housing Finance's market share.
7. Asset Quality Concerns:  A rise in non-performing assets (NPAs) on LIC Housing Finance's books could indicate challenges in loan recovery, impacting profitability.