Bajaj Finance, Shriram Finance, Tata Capital, L&T Finance: NBFCs rise up to 7% amid market rally

Shares of non-banking financial companies such as Bajaj Finance, Shriram Finance, Tata Capital, Cholamandalam Investment and Finance Company, L&T Finance Ltd and Poonawalla Fincorp rose up to 7% in early deals in line with the broader market rally today.

While Bajaj Finance shares rose 5% to Rs 1049.65, Shriram Finance stock gained 6.80% to Rs 967.35 on BSE.

The rise in NBFC stocks comes amid four sessions of relentless buying by Foreign Institutional Investors (FIIs)  in the Indian market. On Wednesday, bond yields in India fell sharply tracking US Treasury yields, which fell after the Democrats won the US midterm elections. The yield on the benchmark 10-year government bond slipped 11 basis points (bps), the biggest fall in seven months. A fall in bond yields in India directly leads to a decline in credit costs and overall borrowing expenses across the economy.

On similar lines, Tata Capital shares gained 4% to Rs 354 and L&T Finance stock added 5.5% to reach Rs 279.60. Shares of another NBFC Cholamandalam Investment and Finance Company gained 6.27% to Rs 1763.15

L&T Finance shares gained 5.5% to Rs 279.95 with its market cap rising to Rs 69,165 crore.

Shares of Poonawalla Fincorp rose 4% to Rs 488.10 in late morning deals against the previous close of Rs 469.55. The rally came amid Sensex rallying 1561 pts to 78,862 and Nifty rising 457 pts to 24,419. Market cap of BSE listed firms rose to Rs 501.14 lakh crore.