Prashanth Tapse, Senior VP (Research) at Mehta Equities, said continuous foreign institutional investors (FIIs) selling made domestic investors jittery, adding that any major disappointment in the ongoing third quarter (Q3 FY25) corporate earnings could fuel extended pessimism.
In response to a query on Jio Financial Services Ltd, the market expert said the stock is in the oversold zone. "It can trade in the Rs 275-260 range for the short term. The company is expected to share updates on its third quarter (Q3 FY25) earnings and previous joint ventures (JVs). Rs 265-270 can be a good buying zone for investors. Those holding should average more at around Rs 265 level. One can hold it with a long-term view. This should be a stock with a 2-year-plus horizon as a lot of businesses which it has announced are yet to make a profit or start operations," Tapse told Business Today on Monday.
When asked about Bajaj Housing Finance Ltd, he suggested that Rs 105-100 will be the zone for fresh investors to watch. "Those holding can consider accumulating more. The stock can do well but not in this quarter. The next financial year will be great for the housing finance sector. In the private sector, Bajaj Housing is one of the fastest-growing companies in terms of AUM (asset under management) growth. When it comes to comparison with PNB Housing and LIC Housing, one should focus on Bajaj Housing for long-term investment," Tapse stated.
Both Jio Financial and Bajaj Housing shares took a sharp beating today, in line with the overall slump in domestic benchmarks. Jio Financial fell 5.54 per cent to hit an intraday low of Rs 265.10 and shares of Bajaj Housing slipped 5.87 per cent to hit an all-time low of Rs 111.55.
Meanwhile, Indian equity benchmarks continued their sharp fall for the fourth consecutive session as all sectoral indices dragged. The 30-share BSE Sensex pack crashed 1,049 points or 1.36 per cent to close at 76,330 and the broader NSE Nifty index tanked 346 points or 1.47 per cent to finish at 23,086. Broader markets (mid- and small-cap shares) witnessed more deeper cuts.
All the 19 sector gauges -- compiled by the NSE -- traded in the red. Sub-indexes Nifty Realty, Nifty Media and Nifty Metal underperformed the NSE platform by falling as much as 6.47 per cent, 4.54 per cent and 3.77 per cent.
The overall market breadth was extremely weak as 3,574 shares declined while 527 advanced on BSE.