Home / Business and Economy / Bajaj Finance Plunges on Asset Quality Woes, but UK Trade Pact Lifts Textile, Auto Stocks
Bajaj Finance Plunges on Asset Quality Woes, but UK Trade Pact Lifts Textile, Auto Stocks
25 Jul
Summary
- Sensex and Nifty50 open lower, dragged by Bajaj Finance, Bajaj Finserv, Reliance, and Infosys
- Bajaj Finance shares fall sharply due to rising gross and net non-performing assets
- New India-UK trade pact expected to benefit textile, auto, leather, and footwear companies
On Friday, the Indian stock market indices Sensex and Nifty50 began the trading session on a negative note, dragged down by declines in shares of Bajaj Finance, Bajaj Finserv, Reliance Industries, and Infosys.
Bajaj Finance, one of the top laggards, saw its shares fall sharply due to concerns over the company's asset quality. The gross non-performing assets (GNPA) of Bajaj Finance rose to 1.03% from 0.86% a year ago, while the net NPA increased to 0.50% from 0.38%. This deterioration in asset quality weighed heavily on the company's stock.
However, despite the early market decline, shares of textile, auto, leather, and footwear companies are likely to remain in focus as the newly signed trade pact between India and the UK aims to cut tariffs on a range of goods, including these sectors. This agreement is expected to boost exports to the UK market.
While the India-UK trade deal could improve market sentiment, analysts say the market may remain range-bound until there is greater clarity on the ongoing trade negotiations between India and the United States.
