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Rules around governance was much required for NBFC sector, says Marcellus' Pramod Gubbi

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Rules around governance was much required for NBFC sector, says Marcellus' Pramod Gubbi

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The new regulatory framework for NBFCs was much needed for the sector, said Co-Founder of Marcellus Investment Managers, Pramod Gubbi. Speaking to CNBC-TV18 he added, "An overarching view around governance which was much required for this sector [NBFCs] given the events of the last two years where we had situations around IL&FS and Dewan Housing Finance Corporation. These were not really small NBFCs given how much they were borrowing from the wholesale market, they were systemically important. It was time that the rules around governance for some of the larger NBFCs were tightened."

The new regulatory framework for NBFCs was much needed for the sector, said Co-Founder of Marcellus Investment Managers, Pramod Gubbi. Speaking to CNBC-TV18 he added, "An overarching view around governance which was much required for this sector
Talking about Q3 results he said, "It had couple of drivers on the demand side whether it is festive demand or pent up demand given it is pretty much it is the first quarter after lockdown opening up. During the first couple of quarters lot of companies had cut cost so you will see significantly strong earnings numbers coming through."
"It is important at this juncture to make sure that you are positioned appropriately in the right companies with the strong fundamentals who don’t necessarily rely on a broad-based economic recovery to drive results and therefore performance in returns,” he added.
While giving trades for the next week, Anu Jain, Head - Equity Brokerage of IIFL Wealth Management said, "Any dips on Bajaj Finserv and Bajaj Finance can be bought for another 3-5 percent move upmove. So whether you are a trader or whether you are holding it in your portfolio those two names looks technically even stronger given the way they have reacted today."
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