Financial stocks rise on bank licence hopes
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Stocks of financial services majors that have shown interest in applying for a banking license rose sharply on Monday after the Reserve Bank of India announced the new guidelines for the license.
While shares of Aditya Birla Money and Religare Enterprises rose by 9.9 per cent and 8.75 per cent respectively, that of L&T Finance Holdings and Bajaj Finserv rose by 4.96 and 3.4 per cent respectively. Shares of LIC Housing Finance also rose by 2.7 per cent.
Market experts say that shares of some strong contenders are moving swiftly but they will take a pause in a few days. "The markets are reacting to the news but the whole process is going to take a year or so before RBI takes its final call. These stocks are not expected to move much from here and will take a pause in a few days and may even correct," said Kajal Gandhi, banking analyst at ICICI Securities.
Market experts say that L&T Finance holdings is a strong contender because of its strong management structure and its plan.