HDFC shares dive as Goldman downgrades stock

India's largest housing finance company, HDFC Ltd saw its shares plunge after global firm Goldman Sachs downgraded the stock to sell from Neutral.

The shares of HDFC were last traded at Rs 791, down 2.88 per cent over Thursday's close. The downgrade was largely because of slow recovery in India's economy and on increasing competition in the sector.

Goldman Sachs downgraded its target price on HDFC to Rs 740 from Rs 790.

HDFC is a pioneer and leader in the housing finance business in India and has since inception helped more then 4.02 million customers to own a home of their own, through cumulative housing loan approvals of over Rs. 4.63 trillion and disbursements of over Rs. 3.74 trillion as at March 31, 2012.

The HDFC stock has over the years remained a bellweather and largely attracted holding from domestic and foreign funds who own the stock.

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