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Silver prices have surged to record highs in 2025, driven by safe-haven demand amid geopolitical tensions and increasing industrial applications in green technologies. Analysts predict further gains, with targets ranging from Rs 1,10,000 to Rs 1,23,000/kg on the MCX.
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Emkay Global views the RBIs move as a clear positive for NBFCs, especially those heavily reliant on bank borrowings and with a sizable fixed-rate loan portfolio, such as gold and vehicle financiers. These firms are expected to benefit from reduced funding costs and improved net interest margins (NIMs) in H2FY26 and beyond.
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Sandip Sabharwal highlights the positive impact of RBI's actions, including rate cuts and easing stress on unsecured loans, particularly benefiting MFIs and NBFCs. He favors larger banks and diversified NBFCs, cautioning against real estate investments at current valuations. The rare earth magnets issue from China poses a potential threat to the auto industry, especially EV manufacturers, pending resolution.
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