Bajaj Finance share closed lower today in line with Sensex and Nifty after global ratings agency S&P Global Ratings lowered its ratings on Bajaj Finance to 'junk' while highlighting the increased economic risks to India's banks and financial institutions.Share price of Bajaj Finance closed 1.60% or Rs 46.55 lower at Rs 2,857 compared to the previous close of Rs 2,904 on BSE.
Bajaj Finance saw 6.32 lakh shares changing hands amounting to turnover of Rs 178.12 crore in today's trade. The stock which is the only player from the NFBC sector on Sensex opened at an intraday low of Rs 2,760, down 4.97%.
The share stands higher than 20 day and 50 day moving averages but lower than 5 day, 100 day and 200 day moving averages. Share of Bajaj Finance has lost 22.39% during last one year and fallen 32.53% since the beginning of this year.
In one month, the stock has gained 46.35%. Market cap of the firm fell to Rs 1.71 lakh crore. The stock has lost 4.88% in last 2 days.
Bajaj Finance's issuer credit rating has been lowered to BB+/stable/B from BB-/negative/A-3 earlier, the credit rating firm said.
S&P said stress in the Bajaj Group could spill over to Bajaj Finance, according to S&P Global. "This is due to the benefits to the company's market position and funding access from the common brand name. Although this is not our base case, we would lower the rating on Bajaj Finance if the group credit profile weakens substantially," it said.
Meanwhile, Sensex ended 209 points lower at 34,961 and Nifty closed 70 points lower at 10,312. Sector-wise, barring FMCG, all the other indices closed in red territory, with realty and PSU Bank indices dropping almost 3.5% each.