9 Nifty NBFC Index Stocks Show Up to 22% Upside Potential as Borrowing Costs Fall 40-45 Basis Points

Key Takeaways

1. 9 Nifty NBFC Index stocks carry up to 22% upside potential per Stock Reports Plus, dated June 18, 2026. These include Bajaj Finance, Muthoot Finance, and Shriram Finance. Corporate borrowing costs have dropped 40-45 basis points, supporting this outlook.
    
2. NBFC stocks had been under pressure through much of 2025 and early 2026, hit by heavy FPI selling and Gulf crisis-driven bond yield stress.

Why are NBFC Stocks back on Investor Radars in June 2026?

The moment Gulf tensions showed signs of cooling, NBFC stocks were among the first to respond. That is not a coincidence. Corporate borrowing costs have dropped by about 40-45 basis points, which eases pressure on profit margins and allows lenders to manage funds more efficiently. 

For NBFCs, which borrow from wholesale markets and bond markets rather than deposits, a shift of even 40 basis points can be the difference between a squeezed spread and a stable one.

FPIs have been the biggest sellers in the BFSI space over the past several months. The fact that these stocks have stopped falling, and in some cases started moving up, is being read as a sign that the FPI exit pressure is easing. 

Nine stocks from the Nifty NBFC Index now carry up to 22% analyst-estimated upside, as per the Stock Reports Plus report dated June 18, 2026.

What does a 40-Basis-Point cost drop do for Borrowers?

Lower borrowing costs for NBFCs do not stay within boardrooms. They move downstream. NBFCs serve customers that banks typically skip: truck drivers, small traders, gold loan borrowers, and rural households. 

In FY25, NBFCs reported 20% credit growth while banks managed just 12%. NBFCs now handle 41% of new personal loan disbursements by value, up from 27% two years earlier.

According to LoansJagat, NBFCs now account for 35% of personal loan disbursements in India, up from under 15% five years ago, and led loan book growth at 17% in the last fiscal year.

When an NBFC’s funding cost falls, it eventually feeds into loan pricing for these borrowers. Analysts expect 20-80 basis points of NIM expansion over the next few quarters as NBFCs refinance high-cost borrowings at lower rates.

9 Nifty NBFC Stocks with Upside Potential June 18, 2026)

What are Experts saying about NBFC Stocks Right Now?

Bajaj Finance remains the top pick for quality-conscious investors, given its scale, digital capabilities, and AUM diversification. For value investors, Shriram Finance at 1.6x book offers strong upside with the CV cycle turning. 

PSU NBFCs raised 3-year bonds in June 2026 at lower rates, after pulling similar issues in May when rates were climbing. SIDBI raised ₹6,000 crore through a 5-year bond at 7.40%. REC Ltd secured ₹4,000 crore with a 10-year bond at 7.46%. HUDCO raised ₹2,140 crore for its 5-year bonds at a yield of 7.23%.

By FY27, NCD issuances from NBFCs are expected to grow at a 13% CAGR, with total NBFC borrowings projected to reach $750 billion.

Conclusion

Nine Nifty NBFC stocks are showing up to 22% upside as of June 18, 2026. The bond market is already reflecting the shift, with PSU NBFCs locking in cheaper 3-year money and corporate yields falling 40-45 basis points. Investors who stayed away during the 2025 correction now have a window, though a possible US interest rate hike in the second half of 2026 remains an open risk.

FAQs

What are 9 Nifty NBFC Index stocks giving up to 22% upside as of June 18, 2026?

The nine stocks with an upside till the expiry of the contract on June 18, 2026, are Bajaj Finance, Muthoot Finance, Shriram Finance, L&T Finance, HDB Financial Services, Tata Capital, Poonawalla Fincorp, Sundaram Finance, and Fedbank Financial Services, according to the Stock Reports Plus June 18, 2026 data.

What Nifty NBFC Index stocks can be held for 5 years due to declining interest rates in June 2026?

Bajaj Finance and Shriram Finance have been identified by analysts as top choices for holding. Bajaj Finance is ahead in terms of size and digitization. Shriram Finance has a valuation of 1.6x book value, with the commercial vehicle cycle becoming favorable for Shriram Finance as of 2026.