Jio Financial Services share among top gainers today

Jio Financial Services share is among the top gainers at Nifty 50 today. At 2:20 p.m. the share is up by 0.90%, trading at Rs 314. Nifty 50 index is down by 0.19% at this time. The stock has gained 1.09% in the past five days. In the past one month, it has lost 4.66%. Year-to-date the stock has gained 3.14% in 2025. Nifty 50 index has gained 5.58% in this period. The share has underperformed Nifty 50 index by more than 2%, year-to-date in 2025.

NBFCs stand to gain from the next round of interest rate cuts by central banks

Non-banking Financial Services companies (NBFCs) like Jio Financial Services are expected to benefit from the next round of interest rate cuts by central banks. It is expected that the next round of interest rate cuts by central banks will begin with US Federal Reserve likely to cut down interest rate in its monetary policy meeting tomorrow. Other central banks, like RBI, are expected to follow once the US Federal Reserve cuts interest rate.

Lower interest rate cuts down the cost of financing for NBFCs. NBFCs raise funds from banks, other financial institutions and by floating bonds and debentures. The funds that they raise, they lend to their customers. In India, NBFCs generally are not allowed to raise funds through demand deposits.

Lowering of cost of funding is likely to have a positive impact on the net interest margins of NBFCs such as Jio Financial Services. Net interest margin is the difference between the interest rates that NBFCs charge from their customers and the interest rate that they pay on the funds that they have raised or borrowed. Higher interest margin translates into higher profitability too.

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

Source: NSE