Bajaj Finserv, Bajaj Finance shares shoot up as NBFC stocks gain today

Shares of the so-called Bajaj twins, Bajaj Finserv and Bajaj Finance, are sharply up today. At 1:15 p.m. 15^th October, 2025 Bajaj Finserv share price is up by 2.78%, trading at Rs 2,075.50. Bajaj Finance share price is up by 3.44%, trading at Rs 1054.20. Nifty 50 index is up by 0.78% at this time.

Shares of NBFCs gaining today

Shares of Non-Banking Finance Companies (NBFCs) such as Bajaj Finance and Bajaj Finserv are gaining today.  This, after US Federal Reserve Chairman, Jerome Powell, indicated yesterday that US central bank may go for another interest rate cut before the end of this year.

If the US Federal Reserve cuts interest rate in its next monetary policy meeting on October 29^th, the Indian central bank, RBI, may also follow suit. Retail inflation in India in September touched an 8-year low of 1.54%. This also gives more room to RBI to go for another interest rate cut before the end of this year. An interest rate cut would give further boost to the Indian economy. However, due to the continued depreciation of rupee against the dollar, there is also a chance that RBI may keep interest rate unchanged even if US Federal Reserve goes for an interest rate cut. An interest rate cut by RBI may put downward pressure on rupee.

Lower interest rate scenario beneficial for NBFCs

Lower interest rate scenario is beneficial for NBFCs as their cost of funding goes down. NBFCs mainly raise funds from banks and other financial institutions or by floating bonds and commercial papers.  Lower interest rates will also increase the demand for loans from these NBFCs.

Rally in gold prices also favorable for NBFCs

The rally in gold prices is also favorable for NBFCs that give gold loans. Gold is used as a collateral in gold loans. The maximum loan-to-value ratio in the case of gold loans, that is allowed by RBI, is 75% of the market value of gold put as collateral. So with higher gold prices, NBFCs can give larger amount of loans against the same quantity of gold kept as collateral.

Shares of other NBFCs are also gaining today. At this time, Muthoot Finance’s shares are up by 0.74%, trading at Rs 3,242. IIFL Finance shares are up by 4.61%, trading at Rs 507. 60. Nifty Financial Services Ex-Bank index is up by 2.05% at this time.

Bajaj Finserv, Bajaj Finance among best performing stocks in 2025

Year-to-date in 2025, Bajaj Finserv shares have gained 31.66%. In the same period Bajaj Finance shares have gained 52%. Nifty 50 index has gained 6.77% in this period. That puts Bajaj twins amongst the best performing stocks in 2025.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: NSE