The financial sector has witnessed a flurry of activity, from international investments to domestic policy adjustments, painting a picture of a dynamic landscape poised for potential shifts. Recent news highlights key trends and expert opinions that warrant a closer examination.

ADB Backs Green and Inclusive Finance

The Asian Development Bank (ADB) has extended a USD 100 million commercial loan to SK Finance, an Indian non-banking financial company (NBFC). This investment signals a robust commitment to sustainable and inclusive finance. The funds are earmarked to bolster electric vehicle (EV) financing and provide crucial capital to women borrowers and women-led enterprises. This move underscores the growing emphasis on environmentally conscious investments and the empowerment of women in the financial sphere. The deal, advised upon by legal teams from TT&A and Watson Farley & Williams, exemplifies the collaborative nature of cross-border financial transactions and the increasing sophistication of the Indian NBFC sector.

Policy Reshuffle Before Crucial Budget

In a significant move just weeks before the Union Budget 2025-26, the Finance Ministry has undergone a leadership reshuffle. Tuhin Kanta Pandey, previously Secretary of the Department of Investment and Public Asset Management (DIPAM), has been appointed as Revenue Secretary. Arunish Chawla, takes over as DIPAM Secretary. This change in guard, especially at this juncture, suggests a potential recalibration of fiscal policies and priorities as the government gears up for the budget presentation. Pandey’s experience with asset monetisation, particularly his role in the Air India sale, hints at a continued focus on this area, while Chawla’s diverse background may bring a fresh perspective to DIPAM’s strategies.

Market Veteran Bets on Large Caps

Market expert Deven Choksey of DRChoksey FinServ Pvt Ltd, offers a contrasting view on current market valuations. He suggests that while mid and small-cap stocks appear overvalued, large-cap Nifty50 companies are now attractively priced, especially after the recent market correction. Choksey anticipates a resurgence of buying interest in Indian markets, particularly in these large-cap stocks, throughout 2025. He expresses caution on gold finance lenders like Manappuram Finance, suggesting valuations are full. Conversely, he remains bullish on Reliance Industries (RIL), citing its AI adoption and potential value unlocking through separate listings of its retail and Jio Platforms businesses. He also sees positive prospects for SRF Ltd, indicating that the worst of input cost pressures may be over for speciality chemical companies.

Will the large cap rally materialise as predicted? Much will hinge on sustained investor confidence and global economic cues, but the stage seems set for interesting times ahead in the markets and the broader financial landscape.