₹1 Lakh Crore Wiped Out as Bajaj Finance Slides 18% in March

Bajaj Finance stayed under pressure this week, slipping to a fresh 52-week low and taking its March decline close to 18%. Since the end of February, when tensions between Iran and the US-Israel escalated, the stock has erased over ₹1 lakh crore in investor wealth. Trading at ₹829.50 at around 2:39 pm on 20 March, Bajaj Finance shares had fallen more than 5% on Thursday, 19 March, to close near ₹832, even as the Sensex and Nifty dropped 3.26% each.

Why Are Bajaj Finance Shares Sliding?

The trigger is not company-specific. The fall is tied to a broader market selloff as geopolitical risks rise. Missile strikes on key energy assets in the Middle East have pushed oil prices higher and unsettled global markets.

That matters more for financial stocks. NBFCs like Bajaj Finance depend on stable borrowing costs and steady demand. When inflation risks rise and liquidity tightens, these businesses tend to see selling pressure.

The numbers reflect that shift. The stock is down over 13% in two weeks and nearly 18% in a month. It is also trading below its major moving averages, a sign that sentiment has weakened further.

What Is the Economic Risk For India?

The bigger concern lies in oil. India imports most of its crude, so any sustained rise feeds directly into inflation and the trade balance. A higher oil bill can weaken the rupee and widen the current account deficit.

Moody’s has warned that if disruptions around the Strait of Hormuz last longer than expected, Brent crude could move above $100 per barrel. That would raise import costs and make policy decisions tougher for both the government and the Reserve Bank of India.

Sticky inflation also reduces the RBI’s flexibility on rates. That creates a tougher environment for rate-sensitive sectors such as financials.

There has been some relief, with ships continuing to pass through the Strait, which has cooled oil prices slightly. But the situation remains uncertain, and markets are reacting to that risk.

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What Happens Next?

The recent fall in benchmark indices highlights the shift in sentiment. Sensex dropped nearly 2,500 points in a day, while Nifty fell over 775 points, giving up gains from earlier sessions.

Government officials, however, are not overly concerned about the long term. Commerce Minister Piyush Goyal recently said the impact could be temporary, with India’s underlying strength intact.

Currently, the markets are reacting to the global cues. Stocks like Bajaj Finance may continue to be volatile until the situation becomes clearer. The next move is not dependent on the company's fundamentals, but on the geopolitical situation.

Sources:

Economic Times

MSN