Bajaj Finance Shares Decline 1.81% to Rs. 1,029 Amid Broader Market Weakness

Overview:

• Bajaj Finance slumped 1.81% on significantly lower-than-average trading volumes, denoting poor investor participation.

• Despite recent price correction, valuations stay premium at a TTM PE of 34.99—higher than the sector average.

• Technical indicators show weakness, with the stock hovering near support and struggling to reclaim key resistance zones.

Bajaj Finance share price traded at Rs. 1,029, down 1.81% at press time, underperforming key benchmark indices. The share opened at Rs. 1,048, unchanged from its previous close. However, succumbed to selling pressure soon to reach an intraday range between Rs. 1,049.80 and Rs. 1,024.

Trading activity was sluggish, with volumes dropping to 1.99 million shares, much lower than the 20-day average volume of 8.06 million shares. The value traded was Rs. 20,527.77 lakh, and VWAP remained at Rs. 1,032.27 during the session, indicating subdued demand through the day. Let’s explore an in-depth Bajaj share price analysis based on Moneycontrol data.

Current Market Performance

Despite the weakness, Bajaj Finance stock retains a huge market capitalization of Rs. 6.40 lakh crore, underlining its position as one of India's most powerful financial stocks. However, the stock is still trading below its 52-week high of Rs. 1,102.50, though well off its 52-week low of Rs. 679.20. The long-term chart for the stock shows an all-time high of Rs. 1,102.50, underlining the correction phase the counter is currently negotiating.
Bajaj Finance share price chart on TradingView shows a dip of 1.75% at the time of writing:

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Valuation Picture: Premium Stock, Moderating Metrics

Bajaj Finance share price continues to command a premium within the financial services sector. The stock trades at a TTM PE of 34.99, slightly above the sector PE of 29.21, while the P/B ratio of 6.32 also signals a rich valuation relative to book value. The company's TTM EPS stands at 29.41, reflecting a solid 19% year-on-year improvement.

The stock offers a dividend yield of 2.72%, which continues to be attractive for long-term investors desiring both growth and income. Its book value per share of Rs. 163.05 reflects the premium at which the stock trades, representing the long-term market perception of growth capability.

Analyst sentiment is mixed. 34% of surveyed analysts on Moneycontrol recommend a ‘Hold’, 28% a ‘Buy’, and 9% a ‘Sell’, based on 32 analysts. This reflects a neutral outlook that balances the stock's short-term headwinds against longer-term optimism.

Technical Outlook: Weakness Persists Despite Support Zones

Technically, Bajaj Finance shares remain in a consolidation-to-downtrend phase. The pivot point for the day stands at Rs. 1,045.17, with key resistance levels at Rs. 1,063.83, Rs. 1,079.67, and Rs. 1,098.33. Support levels lie at Rs. 1,029.33, Rs. 1,010.67, and Rs. 994.83. Since the stock is hovering near its first support, any further decline may push the stock closer toward the lower support bands.

Fundamental Tailwinds: Bajaj Housing Outlook Adds Positive Cues

The housing finance subsidiary of the company recently received a target upside of 30% from ICICI Securities, which assigned a Rs. 125 per share target on the back of strong market positioning, superior credit quality, and efficient home loan operations. Accordingly, the brokerage estimates Bajaj Housing to increase its share in incremental home loan originations to 5%, nearly double its current level. This strategic growth focus reinforces long-term confidence in the stock's consolidated business model.

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Outlook

While the near-term trend remains soft, Bajaj Finance share price continues to show strong fundamentals, operational growth, and sector leadership. Valuation concerns and market sentiment may drive short-run volatility, but this financial giant retains a solid long-term investment profile supported by consistent earnings strength and product expansion.

FAQs

1. Why is Bajaj Finance share price falling today?

The share price of Bajaj Finance slipped on broader market weakness, low investor participation, and continued consolidation in the financial services sector. Moreover, low trading volumes and caution over premium valuations have added to the pressure and intraday selling, with the stock struggling to sustain higher levels.

2. How does Bajaj Finance rate fundamentally as a stock today?

Yes. Despite some short-term weakness, Bajaj Finance remains one of India's most fundamentally strong financial companies, supported by high-quality assets, consistent earnings growth, sector leadership, and a proven track record in retail lending and digital finance expansion.

3. What do analysts recommend for Bajaj Finance at this stage?

Analyst sentiment is mixed, with the majority recommending a ‘Hold’ on account of rich valuations. While some expect long-term upside driven by the company's growth strategies, others foresee further correction before the stock may turn attractive for entry again.

4. What are the main levels of resistance and support for the stock?

The immediate resistances are seen at Rs. 1,063 and Rs. 1,079, which are generally where sellers come into play. Strong support zones are around Rs. 1,029 and Rs. 1,010 levels. A breakdown below these levels could invite further weakness, while a bounce may indicate renewed buying interest.

5. Does Bajaj Finance stock offer good long-term investment potential?

Bajaj Finance has long-term potential on the back of its diversified product portfolio, digital lending capabilities, and steady growth in subsidiaries such as Bajaj Housing. Though valuations are stretched, it is considered a long-term player and a reliable compounder by long-term investors, with sustained earnings visibility.