NBFCs lead mid-cap losers of 2018

Non-Banking Finance Companies (NBFCs) went from boom to gloom in 2018. Every other multi-bagger stock in the Indian equity market used to be a NBFC company, but that was until the IL&FS defaults surfaced. 

Shadow banks or NBFCs as they are called in India, are among the top mid-cap loser and thus one of the reasons why the broader markets have still not recovered. In a year, the BSE Mid-cap Index has sunk 15.5 per cent as of Thursday. The downtrend in NBFC stocks started with the defaults of Infrastructure Leasing & Financial Services (IL&FS) group, which is the leading financier of critically important infrastructure projects in India. IL&FS is a systemically important institution and operates through more than 250 subsidiaries. The group total debt is approximately Rs. 95,000 crore which it owes to leading banks and financial institutions. The fear of contagion effect of IL&FS defaults spreading across the Indian banking sector spooks the NBFC sector as a whole.

Here is a list of top 10 mid-cap losers, as you can see the top three stocks that depreciated more than 50 per cent were NBFCs.