Bajaj Finance shares in Thursday's trade (February 27, 2025) zoomed to an all-time high price of Rs 8,736, gaining as much as 3 per cent, while on the NSE it clocked a record high of Rs 8,739 per share.

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Amid the gains, the NBFC company's market capitalization surged to Rs 5.4 lakh crore, pipping the FMCG major Hindustan Unilever that at the last count commanded a market valuation of Rs 5.28 lakh crore. Consequently, Bajaj Finance now ranks as the eighth-largest listed Indian company by market capitalization.

In the last one month, the stock gained over 17 per cent, outperforming the benchmark Nifty50 index which declined over 2 per cent during the same timeframe. The spurt comes following the announcement by Finance Minister Nirmala Sitharaman in her Budget 2025 speech that the income tax exemption limit would be increased to Rs 12 lakh annually under the new tax regime, boosting disposable income as well as consumption.

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Meanwhile, in another notable step, the Reserve Bank of India has reduced the risk weight on bank loans to NBFCs. The move is deemed to augur well both for the banking and NBFC space.

In November 2023, the RBI decided to levy an additional 25 percentage point risk weight on bank loans to NBFC, nonetheless, starting next FY i.e, from April 1, 2025, adhering to Basel III guidelines, the banks will assign risk weights based on NBFCs’ external credit ratings.
 
The reversal of increased risk weights for NBFCs is positive for the sector's growth, according to analysts.

Technicals

Jigar Patel, Sr. Manager - Equity Research, Anand Rathi sees the NBFC's support at Rs 8,500, while resistance is at Rs 8,800. He added that any decisive move above the Rs 8800  level may trigger a further upside to Rs 9000. The expected trading range will be between Rs 8300 and Rs 9000  in the short-term, he added.