Policy● Neutral for Indian equities
Banks vs NBFCs: Which stocks could benefit as RBI set to hike rates for the first time in 3 years?
The brief
- Higher funding costs may pressure NBFC margins, while lenders could benefit
- The rate move may split performance between Indian banks and NBFCs as funding costs change
- Anish Tawakley prefers banks and insurers, warns on NBFCs and capital market stocks
- NBFC Stocks: Rate-Hike Pain May Already Be Priced In; Jefferies Picks 4 Winners For The Next Move
- National Housing Bank likely to double affordable housing outlay for HFCs this fiscal
- NBFCs account for half of new-to-credit originations: Report
- Gold loan companies eye parity on minimum Tier I capital requirement with other NBFCs
RBI’s expected repo rate hike
Ahead of the October 7 policy, polls and analysts widely expected the RBI to raise the repo rate by 25 basis points, with one poll putting it at 5.5%. Inflation, higher oil prices and rupee weakness were cited as pressures; Crisil said India Inc could manage a 50-basis-point hike.
Tuesday, 6 October
- Banks vs NBFCs: Which stocks could benefit as RBI set to hike rates for the first time in 3 years?