NBFC stocks as Aditya Birla Capital, Cholamandalam, REC rise on RBI liquidity stimulus

Stock Market Today: NBFC stocks or Non Banking Financial Services companies stocks saw significant gains on the bourses during morning trades on Thursday on news flow around RBI stimulus

Aditya Birla Capital Ltd, Cholamandalam Financial Holdings Ltd, REC Ltd, Bajaj Holdings & Investment Ltd. Bajaj Finance Ltd share prices gained about 2% and above. Central Depository Services (India) Ltd. Consolidated Finvest & Holdings Ltd, Coral India Finance and Housing Ltd were among key gainers, with share prices rising up to 6% while Capital Trust Ltd share price was key outperformers with share price rising up to 4%

RBI to infuse liquidity

To alleviate liquidity issues, the Reserve Bank of India or RBI plans to inject around ₹1.9 lakh crore into the banking system, as per news reports. The NBFC's have face high challenges led by high interest rates, tax outflows also foreign exchange market volatility

On a review of current and evolving liquidity conditions, the Reserve Bank has decided to conduct the certain operations that will help inject liquidity into the banking system.

Some of the actions highlighted by the RBI include the OMO purchase auctions of Government of India securities for an aggregate amount of ₹1,00,000 crore in two tranches of ₹50,000 crore each to be held on March 12, 2025 (Wednesday), and March 18, 2025 (Tuesday), as per the RBI release

The US dollar to Indian Rupee, Buy or Sell Swap auction of $ 10 billion for a tenor of thirty-six months is also planned to be held on March 24, 2025 (Monday) as per RBI

2. Detailed instructions for each operation shall be issued separately.

3. The Reserve Bank will continue to monitor evolving liquidity and market conditions and take measures as appropriate to ensure orderly liquidity conditions.

The action follows the central bank's easing of loans for microfinance and finance firms, and is viewed as part of the RBI's growth-supporting initiatives.

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