- Sundaram Finance Stock Performance:
- The stock has rallied nearly 23% so far in 2025, showing a favorable bias across time-frames on technical charts.
- In the last six trading sessions, the stock surged over 13%, rising from ₹4,482 to ₹5,073, driven by positive news.
- Market Context:
- The rally aligns with gains in other non-banking financial companies (NBFCs) like Bajaj Finance, Shriram Finance, Mahindra & Mahindra Financial Services, and Manappuram Finance.
- These gains are attributed to the Reserve Bank of India’s (RBI) measures injecting ₹1.9 trillion liquidity into the banking system.
- RBI’s rollback of stricter rules on bank loans to NBFCs, including a 25% reduction in the risk weight on consumer microfinance loans, is expected to encourage more funding to NBFCs.
- Sundaram Home Finance Expansion:
- Sundaram Home Finance, the company’s home loan unit, has expanded its presence in Chennai and plans to disburse up to ₹50 crore in the next 12 months.
- The company has inaugurated four new home loan branches in March 2025.
- Technical Outlook:
- Current Price: ₹5,037
- Support Levels: ₹4,937; ₹4,640; ₹4,550
- Resistance Levels: ₹5,185; ₹5,430; ₹5,773
- The stock has outperformed in March, rising 15.3% compared to a 5.5% increase in the Nifty 50 index.
- So far in 2025, the stock has surged 22.7%.
- It is trading above key moving averages, indicating a bullish outlook.
