Bajaj Finance shares rose by 1.72 percent, closing at ₹1,046.80 on Friday, December 5, following the Reserve Bank of India’s (RBI) decision to cut the repo rate by 25 basis points to 5.25 percent. This move has positively impacted sentiment in rate-sensitive sectors. In contrast, Bajaj Housing Finance, a subsidiary of Bajaj Finance, experienced a decline, falling 0.69 percent to ₹95.65, remaining close to its 52-week low of ₹95, reached earlier this week.
The contrasting performance between the two companies arises amid ongoing selling pressures on Bajaj Housing Finance, particularly after Bajaj Finance’s promoters offloaded shares worth ₹1,600 crore. The housing finance stock has dropped nearly 50 percent from its post-listing peak of ₹188.5 and is now trading close to its initial public offering (IPO) price of ₹70. Despite promoter holdings exceeding 85 percent, concerns prevail regarding the potential for further selling to comply with minimum shareholding regulations.
The RBI’s rate cut marks its fourth this year, totaling a reduction of 125 basis points since February, ultimately triggering a rally in banking and non-banking financial company (NBFC) stocks. The Nifty Bank index increased by 0.8 percent, while other banking stocks saw gains up to 1.5 percent.
This policy decision was generally well-received, with expectations that it will lower borrowing costs and boost demand in the housing and real estate sectors. Home loan equated monthly installments (EMIs) are projected to decrease by ₹600 to ₹1,500 for loans ranging from ₹40 lakh to ₹50 lakh.
Despite the favorable climate in the broader sector, the impact of the promoter stake sale continues to overshadow Bajaj Housing Finance, negatively influencing investor sentiment amid the sector’s rally.
Published on December 5, 2025.
