After the finance minister Nirmala Sitharaman stated in the Union Budget that the government will give more power to Reserve Bank of India (RBI) to supervise NBFCs, Non-Banking Finance Companies surged on Friday.
L&T Finance rose 4%, Can Fin Home 2.2%, M&M Finance 2.7%, Edelweiss Capital 2.2%, Housing Finance 3%, GIC Housing Finance 5%, LIC Housing Finance 2%, JM Financial 1.7%, and PNB Housing 2%.
FM also said that NBFCs that are fundamentally sound will continue to get funding from mutual funds and banks.
The government will widen the budget deficit target to 3.5% of GDP at the upcoming budget, up from a February estimate of 3.4%. Also, the government is said to add the fiscal year 2020 budget deficit target at 3.3% of gross domestic product (GDP).
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.
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