Home >Markets >Stock Markets >Shares of NBFC advance as finance minister allows more power to RBI supervision

Mumbai: Non banking finance companies (NBFC) on Friday surged after finance minister Nirmala Sitharaman said in the Union budget that the government will give more powers to Reserve Bank of India (RBI) to supervise NBFCs.

GIC Housing Finance rose 5%, L&T Finance 4%, Indiabulls Housing Finance 3%, M&M Finance 2.7%, Can Fin Home 2.2%, Edelweiss Capital 2.2%, LIC Housing Finance 2%, PNB Housing 2%, JM Financial 1.7%.

FM also said that NBFCs that are fundamentally sound will continue to get funding from mutual funds and banks.

According to Bloomberg report, the government is said to peg fiscal year 2020 budget deficit target at 3.3% of gross domestic product.

Catch all the live updates of Union Budget here

Analyst are focusing fiscal deficit with focus on any tax reforms. According to a Bloomberg survey government will widen the budget deficit target to 3.5% of GDP at upcoming budget, up from a February estimate of 3.4%.

Finance minister Nirmala Sitharaman is presenting her maiden budget at a time when the economy is showing signs of slowing down amid tepid tax collection. Consumer demand which has been the only engine so far driving the economy also looks vulnerable now.

Earlier on Thursday, chief economic adviser said the government will keep its fiscal deficit under control as it sees a rebound in economic growth from a five-year low. The Finance Ministry said growth will probably reach 7% in the current fiscal year that began on April 1. The government will seek to avoid undermining private investment by widening the fiscal deficit, Krishnamurthy Subramanian, author of the Economic Survey report and chief economic adviser, told reporters Thursday.

At 12:45 pm, Sensex trades at 39,853.16 down 54.90 points, or 0.14%, while the broader Nifty lost 19.60 points, or 0.16%, at 11,927.15.

So far this year, Sensex and Nifty have gained nearly 10% each while foreign investors bought $11 billion and domestic institutional investors sold 7173 crore in equities.

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