Mumbai: NBFC stocks witnessed a strong rally after the Reserve Bank of India (RBI) reduced risk weights on bank finance to NBFCs and microfinance loans, a move expected to enhance liquidity and boost credit availability. The reduction in risk weight allows lenders to allocate fewer funds as a safety buffer, thereby increasing their lending capacity.

• L&T Finance is trading at RS 139.90, up by 6.50 points (4.87%) from its previous close of RS 133.40 on the BSE.
• Shriram Finance is at RS 601.55, gaining 27.40 points (4.77%) from its last close of RS 574.15.
• Cholamandalam Investment and Finance surged to RS 1429.95, up 62.80 points (4.59%) from RS 1367.15.
• Mahindra & Mahindra Financial Services is now at RS 282.45, rising 11.35 points (4.19%) from RS 271.10.
• Bajaj Finserv climbed to RS 1929.35, up 53.40 points (2.85%) from RS 1875.95.
• Bajaj Finance advanced to RS 8698.15, increasing 205.75 points (2.42%) from RS 8492.40.

Market analysts believe the RBI's decision will provide a significant boost to the NBFC sector by improving capital flow and supporting further loan growth.