Stocks To Buy: HSBC bets the rate cut cycle turning to benefit this NBFC
Published on 27/03/2026 11:53 AM
Stocks To Buy: HSBC bets the rate cut cycle turning to benefit this NBFCHSBC mentioned multiple potential catalysts for the stock, including firmer interest rates, the possibility of a repo rate hike, faster loan disbursements, and easing bond yields.By Meghna Sen March 27, 2026, 11:53:41 AM IST (Published)2 Min ReadShares of LIC Housing Finance Ltd. edged higher on Friday, March 27, after brokerage firm HSBC upgraded the stock and raised its price target.
The brokerage upgraded LIC Housing Finance to 'Buy' from 'Hold' and increased its target price to ₹610 from ₹570 earlier.
HSBC mentioned multiple potential catalysts for the stock, including firmer interest rates, the possibility of a repo rate hike, faster loan disbursements, and easing bond yields.
It said that any of these triggers could lead to a sharp re-rating in the stock.
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The brokerage pointed out that India is currently near the bottom of its interest rate cycle, with bond yields still elevated relative to the repo rate.
While its base case assumes no change in the repo rate, HSBC said LIC Housing Finance could be a key beneficiary if expectations shift towards a rate hike.
The brokerage has raised its FY26-28 earnings estimates by 3-4%, factoring in a firmer rate environment.
HSBC also flagged attractive valuations, citing that the stock is trading near all-time lows and at a 38% discount to its five-year average.
Given its secured loan book, comfortable capital position, and AAA credit rating, the brokerage sees limited downside risk at current levels.
Shares of LIC Housing Finance were trading about 1% higher at ₹500.55. The stock has declined around 7% over the past month.Continue ReadingNote To ReadersDisclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.TagsLIC HousingLIC Housing Finance