03 April 2024: There are a couple of recent events that likely contributed to the decline in Indiabulls Housing Finance's share price:
Enforcement Directorate (ED) Raids (February 29, 2024):
The most immediate cause for the recent fall seems to be raids conducted by the ED on Indiabulls Housing Finance's Delhi offices in a Prevention of Money Laundering Act (PMLA) case. This happened on February 29, 2024.
Investors typically react negatively to such news due to the uncertainty surrounding potential fines, legal troubles, and reputational damage.
Broader Market Correction (March 2024):
The Indian stock market, particularly the financial sector, might have undergone a correction in March 2024. This broader market weakness can impact individual stocks like Indiabulls Housing Finance, even if there haven't been further negative developments specific to the company.
Additional Factors to Consider:
Past Performance: Indiabulls Housing Finance reported a decline in net profit for the quarter ending September 2023 compared to the same period in the previous year. This could be another factor weighing on investor sentiment.
Long-Term Potential: The long-term share price will depend on the outcome of the ED investigation, the company's ability to improve profitability, and the overall performance of the housing finance sector.
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