Housing finance firms gain after UBS upgrade

Mumbai: UBS upgrades Housing Development Finance Corpand Indiabulls Housing Finance.

The bank raised both to "buy" from "neutral" saying it expects their cost of funds to fall faster than lending rates due to easing inflation, liquidity.

Adds mortgage growth has "remained resilient" and adds it expects growth to remain "strong" at 19-20 percent over fiscal 2016-2017.

Separately, UBS maintains "buy" on LIC Housing Finance and reiterates it as top pick.

LIC Housing gains 1.5 percent, HDFC up 1.3 percent, Indiabulls Housing down 0.5 percent after gaining more than 1 percent in early session.