Bajaj Housing Finance & Ola Electric: Here's what Gaurang Shah of Geojit Financial says on these 2 stocks

Gaurang Shah, Senior VP, Geojit Financial, on Wednesday said investors are closely monitoring the interest rate cut announcement from the US Federal Reserve. "25 basis points (bps) rate cut move from US Fed may lead to knee-jerk reaction but 50 bps rate cut might have a spillover positive impact for a day or two," the market expert told Business Today TV. US central bank's rate cut outcome is scheduled to be released later in the day.

When asked to share a view on recently-listed Bajaj Housing Finance Ltd, Shah said, "I'm convinced what the company's management said in terms of the growth prospect at a rate of 12-15 per cent per annum. If this happens, then it will translate into earnings visibility. Whether you should buy Bajaj Housing Finance at Rs 180-200 levels, my view will be to let the euphoria settle down and then take a call as Rs 70 was the higher end of IPO price and the stock has multiplied to a great extent. One should never be in a hurry to invest in the stock market and never chase a stock. Use your rationale and wisdom and then take a call." Shares of Bajaj Housing Finance were last seen trading 3.36 per cent lower at Rs 175.38.

In response to a query on Ola Electric Mobility Ltd, the market specialist said, "The company has Rs 1,500 crore loss on its balance sheet. The competition in the market is very high and Ola's new bike will be available next year post Diwali. In the next 14 months, the company will face huge competition. For the Ola Electric IPO, we've given a 'Subscribe' with a 2-3-year time horizon. It is going to be very challenging for the management to overcome the loss, come into the black and then into blue and green trajectories." Ola Electric shares were up 2.24 per cent at Rs 120.75.

Meanwhile, Indian equity benchmarks scaled their fresh record high levels today, led by gains in banks, financials and automobile stocks. Broader markets (mid- and small-cap shares) were trading on a mixed note.

Eight out of 16 sector gauges -- compiled by the NSE -- were trading in the green. Sub-indexes Nifty Bank, Nifty Financial Services and Nifty Auto were outperforming the platform by rising as much as 1.41 per cent, 1.69 per cent and 0.51 per cent, respectively.

However, the overall market breadth was weak as 2,110 shares were declining while 1,744 were advancing on BSE.