Out of the woods? Analysts turn bullish on NBFCs on improved liquidity

Recent steps by the government and the RBI to keep systemic liquidity and rates benign along with direct liquidity to NBFCs facing constraints, in the wake of Covid-19, have helped, analysts say

Fortunes seem to be favouring non-bank finance companies (NBFCs) as analysts are finally turning positive, even though cautiously, on the sector. Since the fateful 2018 collapse of IL&FS, and the subsequent insolvency of DHFL, the fall in the sector was unprecendented. 
 

The sentiment resonates in the stock prices of the counters which plummeted up to 99 per cent between September 2018 and March 2020. In comparison, the S&P BSE Sensex tanked 24 per cent during the period, ACE Equity data show.
 

However, so far in the calendar year 2020, the stock prices have risen up to 153 per cent till