- Bajaj Housing Finance rebounds after a sharp 9% plunge as promoter trims stake. I break down why the stock fell and what comes next.
Bajaj Housing Finance is stabilising after a steep 9 percent intraday plunge on Tuesday, with the stock now trading near ₹1,021 on the monthly chart. The sudden drop came as markets reacted to the promoter, Bajaj Finance Limited, offloading a portion of its stake to meet public ownership requirements. Despite the volatility, the stock has regained some footing, hinting that the worst of yesterday’s sell-off may be behind it.
Why Are Bajaj Housing Finance Shares Dropping?
The slide in Bajaj Housing Finance began after its promoter, Bajaj Finance, trimmed its stake to comply with Minimum Public Shareholding norms. The company reduced its holding from 88.70 percent to 86.70 percent, triggering a wave of short-term selling as markets reacted to the sudden increase in supply.
While the stake sale is regulatory in nature, sharp promoter-level actions often heighten volatility in India’s financial sector, where investor sentiment tends to shift quickly in response to ownership changes.
This narrative gained more traction on Wednesday after another widely shared update resurfaced concerns across the Bajaj group. Reports circulated again about Bajaj Housing Finance hitting a record low following the stake sale plan.
The renewed scrutiny has kept traders cautious, with sentiment shifting from stability to concern over the near-term direction of the stock.
Bajaj Housing Finance Chart Analysis
The monthly chart shows the stock pausing just below its all-time highs near ₹1,093, with current support forming around the ₹1,000–₹1,020 zone. This region has acted as a reaction band multiple times over the last two years.
Key observations:
- Price still holds well above the 20-month SMA at ₹834, signalling that the long-term uptrend remains intact
- Bollinger Bands are wide, reflecting elevated volatility after a strong multi-month rally
- No structural breakdown despite Tuesday’s 9 percent washout
- Momentum has cooled slightly but not enough to indicate trend reversal
From my perspective, the latest drop looks more like a sentiment flush after an extended rally rather than a change in fundamentals.
Analysts React to Bajaj Housing Finance’s 9% Plunge
The long term view on Bajaj Housing Finance is definitely positive and one may utilise the recent decline as a buy opportunity. The promoter is trimming stake as part of regulatory compliance, so I don’t see any negative in this for the company,”
Said Market analyst, Nimesh Thakkar
Bajaj Outlook: Can the Stock Recover From the Plunge?
The stabilisation around ₹1,020 is a constructive early sign. If the stock holds above the ₹1,000 mark, it remains positioned for continuation of its long-term uptrend. A move back above ₹1,080–₹1,090 would restore bullish momentum and reopen the path toward fresh highs.
From my view, this looks more like temporary volatility sparked by a regulatory stake adjustment rather than a red flag about the company. If broader market sentiment improves, Bajaj Housing Finance could regain lost ground sooner than many expect.
The long-term trend is still positive, and the decline may offer an opportunity for staggered buying if the stock holds above the ₹1,000 support zone.
The sharp drop came after promoter Bajaj Finance sold part of its stake to meet public shareholding rules, triggering a wave of short-term selling and volatility.
Recovery is possible if the stock stays above key support and sentiment stabilises. A move back above ₹1,080–₹1,090 would put a retest of prior highs back on the table.
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