NBFCs Surge Amid RBI’s Policy Boost, Markets Stay Muted

On Thursday, Indian stock markets closed flat as investor caution prevailed, with the Nifty 50 dipping 0.03% and the BSE Sensex edging down 0.01%. This stagnation was primarily due to declines in automobile stocks and UltraTech Cement, which offset gains in the financial sector. Notably, Non-Banking Financial Companies (NBFCs) experienced a significant rally after the Reserve Bank of India (RBI) reduced risk weights on loans to NBFCs and microfinance institutions. Shares of CreditAccess Grameen surged up to 15%, while Bajaj Finance climbed nearly 3% to a new high of ₹8,736. This regulatory relaxation is expected to enhance credit flow to NBFCs, bolstering the financial sector's outlook. 

 

Source: Business Standard