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RBI Rate Cut Lifts Bajaj Finance, But Housing Arm Sinks

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.
RBI Rate Cut Lifts Bajaj Finance, But Housing Arm Sinks

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.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

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Property Code: 5571