NBFC stocks in fast lane post Budget 2021; Nifty Financial Services up 4%; M&M Financial top gainer

The index has also touched an intraday high of 16,455.45.

Feb 02, 2021 02:02 IST India Infoline News Service

Majority NBFC stocks were trading on a higher note on Tuesday's session after Union Budget 2021. At around 2.33 pm, Nifty Finance Services was trading at 16,277.35 up 574.90 points or 3.66%. The index has also touched an intraday high of 16,455.45.

M&M Financial Services was the top gainer on the index surging by 7.5% followed by HDFC gaining 4.5%.

HDFC is in focus amid December 2020 (Q3FY21) quarterly result announcement which is scheduled to later today.

Stocks like REC, Shriram Transport Finance, PFC, Bajaj Finance, ICICI Lombard and Bajaj Holding gained between 2-4.5%. HDFC AMC also surged nearly 1%.

However, HDFC Life and ICICI Prudential were top underperformers tumbling nearly 3% each followed by Bajaj Finserv down 2.5% and Cholamandalam Investment lower by 1.4%. SBI Life dived nearly 1%.

Finance Minister Nirmala Sitharaman in Budget 2020 said, that to mprove credit discipline while continuing to protect the interest of small borrowers, for NBFCs with minimum asset size of Rs100 crores, the minimum loan size eligible for debt recovery under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 is proposed to be reduced from the existing level of Rs50 lakhs to Rs20 lakhs.

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