PFC hits 52-week high, REC extends gains, up 5%; analyst sees more upside

Power Finance Corporation and REC stocks have surged over 22 per cent each, compared to a 9 per cent increase in the Nifty50 index

Shares of state-owned non-banking finance companies (NBFCs) REC and Power Finance Corporation have surged up to 5 per cent each on Thursday, amid an overall volatile market.  

At the time of writing, REC stock was trading at ₹367.20, up by 4.13 per cent, and Power Finance Corporation share price was at ₹459.85, up by 3.40 per cent. In comparison, the benchmark NSE Nifty50 was quoting at 24,161.60 levels, up by 69.70 points or 0.29 per cent.  

In April so far, both the stocks have surged over 22 per cent each, compared to a 9 per cent increase in the Nifty50 index. Power Finance Corporation stock touched a 52-week high of ₹467. 

 

The rally comes as the Reserve Bank of India (RBI) proposed to shift to an asset-size-based classification for upper-layer NBFCs to simplify regulation and improve transparency. 

Under draft amendments to the Scale-based Regulatory Framework (SBR), NBFCs with assets of ₹1 trillion and above will be categorised as upper-layer entities, replacing the current model that combines quantitative and qualitative parameters.  READ | Groww share price soars 43% thus far in April; BofA sees more upside 

"The scale-based regulation framework currently places government-owned NBFCs in the base layer or middle layer and not in the upper layer (UL). In pursuance of the principle of an ownership-neutral regulatory regime for NBFCs, it is now proposed to consider eligible government-owned NBFCs also for inclusion in the list of NBFC-UL based on the revised criteria," the central bank said. 

It also proposed to allow all upper-layer NBFCs to use state government guarantees as a credit risk transfer instrument without any limit, subject to the specified conditions.  

According to a report by CareEdge Ratings, if these draft amendments are finalised without any changes, the total assets of upper-layer NBFCs would be 70 per cent of the total assets of NBFCs in India (as of September 2025), as compared to 30 per cent under existing guidelines. 

Rajesh Palviya, senior vice president for technical and derivatives research at Axis Securities, said both stocks are looking positive in the near-term, as they have rebounded from an oversold trajectory. Both have shown buying interest at lower levels and are now witnessing a recovery over the last couple of weeks.   READ | Firstsource Solutions share price jumps 15% with 10x volumes; Q4 in focus 

"This is the third consecutive week that Power Finance Corporation has been forming higher highs and higher lows, which indicates sustained buying action. Derivative data also suggests a long build-up. From a technical standpoint, the stock has managed to break out of an eight- to nine-week consolidation range. This is a positive development for the near- to short-term structure. At this juncture, we remain bullish from a near-term perspective. One can stay on the long side as long as the stock sustains above the ₹448 level. ₹448 is the key level to watch on the downside. If the momentum continues, the next possible target could be in the ₹475–480 range for PFC," he said. 

According to Palviya, a similar structure is visible in REC as well, with comparable technical behaviour. For REC, one should maintain a stop-loss around ₹358, with a potential upside target of ₹385–390.  Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.