Bajaj Finance shares surged 5% to a high of ₹995.80 on the NSE following robust Q2 FY27 business updates that demonstrated the company's continued growth momentum. The NBFC reported robust AUM growth and steady customer addition, with new loan books rising 11% and the total customer franchise standing at 128.85 million, up 16% year-on-year. The company's new customer acquisition was healthy at 4.42 million new customers, while its deposit book stood at ₹69,700 crore. Global brokerage Citi maintained its 'Buy' rating on the stock with a price target of ₹1,300, building on the earlier capital raise confidence that had already positioned the stock as a standout performer.
The company's ₹17,500 crore capital raise plan through a ₹11,700 crore QIP and ₹5,800 crore warrants to promoter Bajaj Finserv has provided significant comfort to investors. Jefferies noted that the capital raise is slightly higher than expectations and works out to about 3% of the company's market cap and 13% of FY27 estimated net worth. The brokerage expects this move to lift FY28 estimated book value per share by 8%, while keeping earnings per share broadly flat and only marginally lowering return on equity. UBS has also upgraded the stock to Neutral from Sell and raised its target price to ₹1,100 from ₹910, citing improved asset quality and better positioning to benefit from a new cycle in unsecured lending.
While Bajaj Finance and Nykaa gained momentum, other major stocks faced pressure in Monday's trading session. HCLTech shares declined 3% amid selling pressure, though the Accenture numbers offered some encouragement to Indian IT companies ahead of their Q2 results. Avenue Supermart (DMart) shares fell over 6% to a low of ₹3,575.70 as productivity remained muted in Q2, with the company's provisional standalone revenue surging 18.4% year-on-year to ₹19,206.18 crore for the quarter ended September 30, 2026. The benchmark indices traded in a volatile manner with the Nifty trading near 22,600 while the Sensex is up 0.61%, with the BSE shares surging 4% to hit the day's high of ₹3,166.40.
Nykaa shares jumped 6% to a high of ₹344.55 following strong pre-quarter business updates that suggest continued growth momentum in the topline. The company's consolidated net revenue growth is expected in the late twenties year-on-year, while consolidated gross merchandise value (GMV) growth is expected to be in the high twenties. The strong quarter was supported by robust customer acquisition, repeat orders, sustained traction in House of Nykaa brands and LFL store sales growth. Fashion continued its steady performance, significantly ahead of estimates, with new customer additions, assortment expansion and continued traction in Nike partnership helping the quarterly performance.
According to reports from ET Now Digital, these brokerage actions come amid a cautious market backdrop with global cues and elevated crude prices keeping sentiment subdued. Foreign investors sold $2.7 billion of Indian equities in September, contributing to the challenging market environment. The recommendations could guide investor focus and trading decisions, with Bajaj Finance emerging as the top gainer in the Nifty 50 and the case for the stock resting on strong loan growth of about 23%, fresh capital providing room to grow without stretching leverage, and improved asset quality trends that are drawing investor interest even as the broader market remains weak.
