Bajaj Housing Finance’s stock performance to chart HFC shares’ path

Investors dumped shares of housing finance companies after Monday’s stellar debut of Bajaj Housing Finance as investors deemed their run-up ahead of the listing excessive. Whether these shares rebound and the investor appetite for them sustains would depend on how Bajaj Housing Finance’s stock performs in the days ahead.

PNB Housing Finance and LIC Housing Finance tumbled 6.51% and 5.77%, respectively. Can Fin Homes fell 3.02% while Aavas Financiers and Home First Finance declined around 2% each. Aptus Value Housing Finance ended 1% lower on Monday.

Bajaj Housing shares ended at ₹165 on Monday, up 135% over its IPO price of ₹70. Analysts said the stock’s valuations were elevated after the listing.

“The IPO led to a rub-off effect on other listed players, but the gains are likely to be short-term sentimentally positive moves,” said Manish Chowdhury, head of research, Stoxbox. “Bajaj Housing is not cheap from a valuation standpoint, but the wealth Bajaj Group companies created in the last two decades led to an overwhelming response to the IPO.”