Decline continues for Bajaj twins for third straight session as stocks corrects 8% after RBI's PCA norms for NBFCs

Declining for the third straight session, the financial heavyweight Bajaj Finance shares have tumbled around 8 per cent in the last three days as analysts raise concerns over growth prospects. The counter on Wednesday dipped almost 3 per cent to Rs 6860 per share on the BSE intraday during Wednesday’s session.

The NBFC stock has corrected by around 14 per cent from its record high level of Rs 8,020 per share hit on October 10, 2021; it had hit a low of Rs 6,678 per share on November 29, 2021.

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The ongoing weakness can be attributed to the Reserve Bank of India’s (RBI) announcement regarding prompt corrective action norms for non-banking finance companies on Tuesday.

The RBI said the revised PCA framework is also applicable to all deposit-taking non-banking financial companies (NBFCs), all non-deposit taking NBFCs in the middle, upper and top layers, including investment and credit companies, core investment companies, infrastructure debt funds, infrastructure finance companies and microfinance institutions.

Bajaj Finance, in the last one month, has underperformed the market and fallen 9 per cent, as compared to 4.6 per cent decline in the S&P BSE Sensex. 

While the counter was down 7 per cent in three months, as against a 1.4 per cent fall in the benchmark index. However, Bajaj Finance has rallied 34 per cent in the last one year versus a 25 per cent surge in the Sensex.

Along with Bajaj Finance, it’s another twin stock Bajaj Finserv is also on declining trend since Monday and has fell nearly 6 per cent in three days and trading weak by 2.5 per cent to Rs 16715 per share on the BSE intraday trade on Wednesday.