While questions remain, RBI panel's recommendations, if implemented, could result in structural changes for the sector
Impact of rising bad loans may become discernible only in the second half of FY21. This may hurt asset quality and earnings growth, particularly of small and medium-sized banks
Over the past few sessions, most NBFC stocks have gained ground. Here are the key levels to watch in select counters basis their technical chart pattern
NBFCs may be forced to dig into their cash reserves if systemic liquidity support dries up
The policy boost by the government and the RBI will help the economy and the financial system immensely, says Manish Gunwani
Backing of a liquid collateral and pricing power augur well
Amid FII sell-off, contribution of financials to the index dips to 37.8%
Stock up 37% from issue price, higher valuation could cap further upside
Experts said the liquidity crunch at NBFCs had compounded worries for the market, which is already grappling with the depreciating rupee and higher oil prices
Bajaj Finance, HDFC most preferred; analysts favour shift to high-quality banks
Bajaj Finance, DHFL, Centrum Capital, Shriram Transport and Muthoot Finance were up in the range of 5% to 12% after a media reported that the SBIs loan portfolio buys will provide liquidity to NBFCs
In addition to higher costs, the Street is worried about fall in credit growth
Edelweiss Financial Services, Srei Infrastructure Finance, Can Fin Homes and Reliance Capital were down 5% to 14% on the BSE.
Even as Q2 earnings appear promising, experts believe high valuations post the recent rally limits the risk-reward for NBFC stocks