Home / Business and Economy / RBI Rate Cut Lifts Bajaj Finance, But Housing Arm Sinks
RBI Rate Cut Lifts Bajaj Finance, But Housing Arm Sinks
5 Dec
Summary
- Bajaj Finance shares rose 1.72% on RBI's repo rate cut.
- Bajaj Housing Finance stock dropped significantly due to promoter stake sale.
- The RBI's rate cut aims to ease borrowing costs and spur demand.
On Friday, December 5, Bajaj Finance shares climbed 1.72% to ₹1,046.80, buoyed by the Reserve Bank of India's decision to reduce the repo rate by 25 basis points to 5.25%. This policy adjustment is expected to stimulate economic activity in sectors sensitive to interest rates.
In contrast, Bajaj Housing Finance, a subsidiary, experienced continued selling pressure, closing down 0.69% at ₹95.65. The stock is trading near its 52-week low of ₹95, having nearly halved from its post-listing high of ₹188.5. This decline stems from a significant promoter stake sale of ₹1,600 crore.
Despite the broader market's positive reaction to the RBI's fourth rate cut this year, Bajaj Housing Finance's performance is overshadowed by concerns over potential further supply from promoters to meet minimum shareholding norms, impacting investor sentiment.
