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The NBFC, or Non-Banking Financial Corporation, is one of the most crucial sectors in the world of business and finance.
Muthoot Finance, one of the biggest names in the sector, and the largest in the gold-based lending segment, has seen its performance improve at the secondary markets. The company shares have expanded significantly in the past few sessions.
The NBFC Comeback
This comes to pass at time, when the NBFC sector is looking to re-arm itself, after a period of relative slump due to regulation.
RBI's recent actions, particularly the move to reduce 'Risk Weight' on lending, are meant to aid NBFCs, who would find it easier to procure resources from banks, who in turn would find it easier to lend capital to NBFCs.
Muthoot Shares Surge
Ever since the move, major NBFCs in the country have been in focus. Muthoot Finance, one of the biggest names, has seen its stock prices rise in the recent past.
In the intraday trading session on Wednesday, March 19, the Kochi (Kerala)-headquartered company saw its stock prices rise to Rs 2,395.15. This was a result of a 3.33 per cent or Rs 77.25 surge in the prices.
The company shares have also crossed an imperative milestone of hitting the 52-week high mark of Rs 2,398.00 in today's trading session.
Not just that, in the past, the company shares have expanded significantly over the past 5 trading sessions. Muthoot Finance shares have risen by a cumulative Rs 221.05 or 10.17 per cent, just in the past 5 trading sessions.
Manappuram Also Rises
The rise in the segment can be further explained by the improvement in the performance of one of Muthoot's rivals, Manappuram Finance Ltd. The Thrissur-based company has also had a positive time at Dalal Street lately.
The company shares have gained a cumulative of 4.06 per cent in the past five days. Today, the company has gained Rs 1.59 or 0.75 per cent of its value, taking its overall price to Rs 212.80.
