New Delhi, Feb. 27 -- Bajaj Finance, Shriram Finance, Cholamandalam Investment and other NBFC stocks jumped up to 6% in early trade on Thursday after the Reserve Bank of India (RBI) lowered risk weights for bank finance to NBFCs and microfinance loans, a move that is likely to unlock more funds and boost credit.

L&T Finance share price rallied as much as 6.4%, Cholamandalam Investment and Finance Company shares spiked 5.12%, Shriram Finance stock price jumped 4.55%, while Mahindra & Mahindra Financial Services surged 3.9% and Bajaj Finance shares gained 2.43%.

Muthoot Finance share price rose over 3%, while Manappuram Finance shares gained 2%.

The RBI reversed the notification of November 2023 of the additional 25% Risk Weight applied ...