Majority of the Finance stocks are trading in the green led by J M Financial and IIFL Holdings. As per a leading financial daily, Bajaj Finance wants to exit out of the construction equipment (CE) financing business on account of low profitability. The company had been cautious of the business for over 18 months. The company's CE portfolio is not very large and is expected to attain maturity over the next 15-20 months. Bajaj Finance has blamed low loan ticket size ranging at an average of Rs 18-19 lakh along with poor margins for the unattractive prospects of the CE financing. Even the gross non-performing assets ratio for CE business stood at 4.5% as compared to a ratio of 1.1% for the overall business. The company has also indicated that it may exit infrastructure lending segment due to lack of clearances for projects. Bajaj Finance's stock is trading up marginally.
Most of the auto stocks are trading in the green with Force Motors and Escorts being among major gainers. As per a leading financial daily, the Delhi government is contemplating to offer subsidy to car owners who want to switch to the electric mode using a specialized conversion kit. The retrofitted hybrid-electric kits can be used on vehicles not more than 2-3 years old. The amount of subsidy is still being worked out. This move comes in the backdrop of the Centre extending subsidy in this year's Budget under the National Mission on Electric Mobility program.