Bajaj Finance plunged nearly 6 per cent and Bajaj Finserv lost 3.7 per cent as investors assessed the potential impact of the proposed lending framework.
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The Reserve Bank of India’s draft proposal to restrict revolving credit facilities for non-banking financial companies sent shockwaves through the financial sector on Friday, pulling benchmark indices lower even as strong corporate earnings from SBI, Motherson Sumi and Hindalco kept the broader market relatively steady.Bajaj Finance plunged nearly 6 per cent, the steepest fall among Nifty 50 constituents, after the RBI’s draft Credit Facilities Directions proposed that most NBFCs be limited primarily to term loans, effectively curtailing flexi-loan and overdraft-style products that have become central to their business models. Bajaj Finserv shed 3.7 per cent, and selling pressure spread across the broader NBFC space. The central bank has invited stakeholder comments until August 28, leaving room for modifications before the framework is finalised.The Nifty 50 closed at 24,570, down 0.27 per cent, while the Sensex fell 456 points to settle at 78,499. Despite Friday’s decline, both indices ended the week in positive territory, with the Nifty gaining 0.77 per cent over the five sessions. PSU Banks and Defence were the standout sectoral performers for the week, rising 5 per cent and 4 per cent respectively.“The market’s concern is that a structural change in lending practices could alter the growth trajectory of retail-focused NBFCs over the medium term,” noted Hariselvan Radhakrishnan of HST Wealth, adding that the immediate reaction reflected uncertainty rather than any reassessment of underlying asset quality.Strong earnings cushion broader marketThe day’s losses were cushioned by gains in Auto and IT stocks. State Bank of India rose nearly 4 per cent after reporting a 10 per cent jump in net profit for the June quarter, with gross NPAs declining to 1.47 per cent, its best asset quality reading in years. Motherson Sumi surged 8.7 per cent after doubling its quarterly profit and posting record revenue. Hindalco gained 3 per cent on the back of a 32 per cent year-on-year rise in quarterly revenue.Broader markets held up better than the headline indices. The Nifty Midcap 100 edged up 0.22 per cent, while the Nifty Smallcap 100 ended nearly flat, with both indices hovering near all-time highs.Markets await inflation data, IPOs and RBI clarityOn the currency and commodities front, the rupee traded near 95.19 against the dollar, supported by FII inflows and a softer US Dollar Index around 99.80. Gold on MCX remained firm above ₹1,47,000, buoyed by safe-haven demand. WTI crude hovered near $77.5 a barrel, with geopolitical uncertainty around the Strait of Hormuz keeping energy markets on edge.Looking ahead, markets are expected to trade with a positive bias next week, supported by resilient domestic fundamentals and the final stretch of the Q1FY27 earnings season. Investors will track India’s CPI and WPI inflation data, US CPI and PPI numbers, and the OPEC Monthly Oil Market Report for directional cues. Five mainboard IPOs, including Molbio Diagnostics, Milky Mist Dairy Food and Shiprocket, are set to open for subscription, with a combined issue size of roughly ₹7,479 crore. The final shape of the RBI’s NBFC lending norms, once the consultation period closes, is expected to remain a key overhang for financial stocks in the weeks ahead.Published on August 7, 2026
