Investors worry liquidity crisis as housing stocks continue to fall

Shares of NBFC and housing finance firms continued to trade weak Thursday, plunging by up to 8.5 percent on worries over liquidity constraints.

Can Fin Homes be plunged 8.48 percent, PNB Housing Finance 7.29 percent, Indiabulls Housing Finance 6.05 percent, DHFL 4.87 percent, LIC Housing Finance 2.63 percent and Reliance Home Finance 0.74 percent on BSE.

Shares of Mahindra & Mahindra Financial Services plunged 5.36 percent, Motilal Oswal Financial Services 5.17 percent, Manappuram Finance 4.97 per cent, Shriram City Union Finance 3.28 per cent and Muthoot Capital Services 3.06 per cent.

Liquidity concerns in the NBFC space have hit investor sentiment of late, with shares of many of these companies tumbling sharply.

Shares of housing finance and NBFC companies had dropped as much as 23.5 percent Tuesday, led by DHFL, on fears of a liquidity crisis.

These stocks fell in Monday's trading session as well.