Markets And NBFCs

NBFCs' reliance on banks increased, particularly for NBFCs in the upper layer (NBFCs-UL), whose direct bank borrowings have grown steadily

With most non-bankers reaching the maximum funding cap from banks, their projected 16 per cent loan growth may be impacted, leading to margin compression for the sector this fiscal, according to a report. Bank funding to NBFCs has grown rapidly to Rs 13.1 lakh crore in February 2023 from a low Rs 3.9 lakh crore in FY17, growing at a CAGR of 22 per cent, which is double the overall bank credit growth, an India Rating report said. The rising share of bank funding has helped NBFCs offset the sluggishness in capital markets, which remained lukewarm during the pandemic and pricey during the first nine months of FY23, it added. Non-banks, including housing financiers, will face increased funding challenges in FY24, which is likely to impact their loan growth target that was earlier projected to clip at 16 per cent, the agency said without quantifying the impact or how much will be the loan growth. According to the agency, the only silver lining is the exit of the largest NBFC, the mortga

They certainly sold in May, but rather than go away as the old stock market adage suggests, traders returned to aggressively buy the dip, causing some of the wildest monthly swings in recent times.

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

The markets are clear 5 per cent growth is not the new normal

On the global front, a lot of funds have been underweight on emerging markets, including India since last few months.