Bajaj Finserv zooms over 7 per cent; heres why!

The shares of Bajaj Finserv, however, are seen trading with optimism, owing to the company's announcement of issuing bonus shares.

The markets are seen trading down during Tuesday's trading session after showing signs of weakness on July 25. The shares of Bajaj Finserv, however, are seen trading with optimism, owing to the company's announcement of issuing bonus shares.   

The shares of Bajaj Finserv opened with a gap-up on Tuesday even when the markets opened in the red. Bajaj Finserv shares opened above the crucial 13,000 levels and are seen trading in green by recording gains of over 7 per cent on a day when BSE Sensex is down by more than 300 points.   

After a positive set of results declared by the banks, there is positive sentiment built around financials. Few experts believe that the next leg of the rally will be led by the financials.   

The bonus announcement along with positive sentiment for financials and an expected positive set of results to be announced for Q1FY23 is the reason behind the outperformance of Bajaj Finserv shares during Tuesday's trading session.   

The company intimated the bourses that it will also consider a proposal for:  

 1. Sub-division of equity shares of the company of the face value of Rs 5 and/or, 

 2. Issuance of fully-paid bonus equity shares to the members of the company.  

It further stated that the decision of the board of directors will be informed to the stock exchanges on July 28, 2022. 

The price volume breakout in Bajaj Finserv is a good sign for the momentum traders and investors. It is possible that the shares of Bajaj Finserv may outperform in the near term, owing to the positive announcement of the issuance of bonus shares.   

Bajaj Holdings is also reacting positively to the announcement and emerged as the leading Mid-Cap gainer on July 26. Its shares are seen trading higher by more than 2 per cent.