New Delhi, June 11 -- Affordable housing finance companies (HFC) are back in vogue since the Reserve Bank of India's (RBI) surprise 50-basis-point rate cut on 6 June. Their stocks rose around 6-7% in the last two trading days, before the broader financial services sector gave up most of its gains on Tuesday.

It's because in a low-interest rate regime, affordable HFCs are likely to offer better returns compared to prime or super prime lenders, according to experts.







"The affordable space is niche and relatively less competitive, as there are no banks present in that segment," Anusha Raheja, research analyst at Dalal & Broacha Stock Broking Pvt. Ltd told Mint. "Hence, they will face lower NIM (net interest margin) pressures compared ...