The Indian stock market witnessed a historic moment on February 3, 2025, as Bajaj Finance Ltd.’s shares surged to an all-time high of ₹8,440, marking a significant increase of 5.48% for the day. This surge followed the stock’s remarkable ascent over the past six trading days, with the shares rising approximately 15% from previous lows.
Bajaj Finance, considered one of the most prominent non-banking financial companies (NBFCs) in India, experienced notable market activity. Trading volumes hit 33.02 lakh shares, and the stock opened at ₹7,922.20, quickly surpassing its previous close of ₹8,000. With the trading session characterized by bullish momentum, the stock oscillated between ₹7,921.05 and ₹8,440, before settling near its peak.
Various factors contributed to this significant market movement, including strong financial performances detailed in Bajaj Finance’s Q3 FY25 earnings report. Just recently, the company reported net profits of ₹4,308 crore, reflecting an 18% increase year-on-year. This surge was fueled by impressive loan growth during the festive season, evidenced by over 12 million loans booked, up 22% from last year.
Another driving factor behind the stock's record high was the supportive financial environment following Finance Minister Nirmala Sitharaman’s recent Budget announcement. The government’s proposal to raise the personal income tax exemption limit is anticipated to increase disposable income, leading to heightened consumer demand. Analysts at CLSA pointed out the positive impacts on retail credit lenders resulting from improved household balance sheets and discretionary cash flow for mid-income households.
Alongside the positive sentiment from the Budget, the Reserve Bank of India (RBI) is also anticipated to play a role, with expectations of at least a 25 basis-point rate cut during their upcoming monetary policy meeting. If implemented, this cut could lower borrowing costs for NBFCs, enhancing profit margins for companies like Bajaj Finance.
Top analysts have expressed optimistic views on Bajaj Finance's performance. Kranthi Bathini from WealthMills Securities noted, “NBFC companies like Bajaj Finance are going to benefit from the boost to consumption demand in the medium- to long-term.” This sentiment resonates well with the market, with retail investors contributing to nearly 42% of the total traded value observed during the stock's rise.
Technical analysts have also observedbreakout patterns within Bajaj Finance’s stock chart. According to Kunal Shah, Senior Technical Analyst at ICICI Direct, the stock’s close above ₹8,300 confirms strong bullish momentum. He advises short-term traders to watch for consolidation around ₹8,500 before anticipating the next upward movement.
Despite this optimistic outlook, some analysts urge caution as Bajaj Finance trades at high valuations, with some citing concerns about the sustainability of its growth. Investor Dolly Khanna emphasized, “Valuations at 8.5x P/B are steep compared to historical averages,” urging stakeholders to assess market conditions before making blind investments.
Meanwhile, Saurabh Mukherjea of Marcellus Investment Managers recognized the company’s strong positioning within the market. He stated, “Their digital ecosystem creates an unmatched moat,” reflecting the firm’s advantageous innovations within the fintech space.
Looking forward, analysts are closely monitoring the performance of Bajaj Finance as it approaches the upper circuit level of ₹8,800 and beyond. Immediate support for investors rests at ₹7,921—the day’s low—while resistance levels are anticipated near the ₹8,800 mark. Regardless of the outcome, Bajaj Finance remains a focal point for both retail and institutional investors as they navigate the fluctuative market.
So, what does this mean for the future? The combination of solid financial results, optimistic institutional forecasts, and potential favorable economic shifts positions Bajaj Finance as not merely a stock of interest but also as one poised to continue capturing the attention of investors.