HUDCO, PFC Gain on RBI’s Infrastructure-Friendly Policy

HUDCO and Power Finance Corporation (PFC) led infrastructure stocks higher after the RBI announced reduced risk weights on NBFC lending to operational, high-quality infrastructure projects, boosting investor sentiment. HUDCO rose 4% to ₹235, while PFC gained 4% to ₹426.40. The move is expected to lower capital requirements for lenders, improve credit flow, and reduce borrowing costs for infrastructure developers—spurring sector growth. Other gainers included IREDA (+4%), REC (+4.6%), and PFC, which reported strong performance: ₹92,710 crore in loan sanctions and ₹25,838 crore in disbursements in H1 FY26—Q2 disbursements surged 43.5% YoY. The RBI kept the repo rate at 5.50%, raised FY26 GDP forecast to 6.8%, and cut inflation outlook to 2.6%, signaling a pro-growth stance. With improved financing efficiency and solid execution by key PSUs like PFC, the infrastructure finance sector is poised for robust growth, attracting renewed investor confidence.