RBI to announce facility for NRIs to exchange old notes
The Reserve Bank of India (RBI) on Saturday said that it will introduce a facility for exchange of old specified…
Micro lender Bharat Financial Inclusion lead non-banking finance companies substantially higher on Tuesday as investors latched onto beaten down valuations in the sector that experienced heavy selling earlier this month.
Eleven out of 13 NBFC stocks listed in the futures and options segment rose between 1-6.9 per cent with positive changes in open interest. Bharat Financial, Bajaj Finance, LIC Housing Finance and Mahindra & Mahindra Finance also experienced a rise in physical deliveries, perhaps pointing to strong investor lead buying as many of these stocks fell between 9-30 per cent since November 8 when Prime Minister Narendra Modi announced his ambitious plan to destroy black money holdings by demonetising 1,000-rupee and 500-rupee notes.
NBFCs had borne the brunt of massive selling pressure in the market as an absence of financial liquidity from the $2 Trillion economy resulted in financed purchases of discretionary goods such as washing machines and cars taking a major hit.
Eleven NBFCs continue to trade between 0.8-10.2 per cent below their closing prices on November 8, the day when demonetisation came into effect. Only state-run Power Finance Corp and LIC Housing Finance have shown positive traction in the past three weeks.
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