Bajaj Finance: Stocks Fall 4% post Listing

Key Points

• Bajaj Finance made its debut on the stock exchanges on Wednesday, February 8, 2023.
• The stock opened at Rs 5,399, a discount of 4% from its issue price of Rs 5,625.
• The stock fell further during the day and closed at Rs 5,270, down 4.16% from its issue price.

Market Experts had predicted a strong listing for Bajaj Finance

Ahead of the listing, market experts had predicted a strong listing for Bajaj Finance, given its strong fundamentals and the positive sentiment in the market. However, the stock's performance on the listing day fell short of expectations.

One of the reasons for the weak listing could be the recent volatility in the stock market. The Sensex has fallen by over 1,000 points in the last few days, and this has dampened sentiment in the market. Additionally, the initial public offering (IPO) of Bajaj Finance was priced at a premium, which may have led to some investors booking profits on the listing day.

Analysts Expect a Rebound in Coming Days

Despite the weak listing, analysts expect Bajaj Finance to rebound in the coming days. The company has a strong track record of growth and profitability, and it is well-positioned to benefit from the growing consumer finance market in India. Additionally, the stock is trading at a discount to its peer group, which makes it attractive for long-term investors.

Long-term Investors Remain Bullish on Bajaj Finance

Long-term investors remain bullish on Bajaj Finance. The company has a strong management team, a loyal customer base, and a wide range of products and services. Additionally, the company is well-positioned to benefit from the growing consumer finance market in India. As a result, long-term investors should consider buying the stock at current levels.