At the beginning of the year, financial stocks were investors’ favourites and were flying high. Sales figures and margins were soaring across the industry. Unfortunately, it didn’t last. Suddenly a boom caused by bulls has turned red. They are decelerating rapidly than they took time to reach high.Financial stocks are bleeding badly led by Bajaj Twins i.e Bajaj finance and Bajaj finserv are trading near a 52 weeks low.
Corona pandemic is going to eat financial companies’ margins, going to erode their profit badly. A 21 days lockdown announced by Indian government is going to slow down the consumer demands and decrease spending. This will affect the revenue generation by consumer financial stocks.
Bajaj finance had crashed by more than 10% in yesterday’s trade. Today also stock is trading down with more than 3%. It hit a new 52 weeks low at 2100 in early hours of trading. Mahindra and Mahindra financial services and Cholamandalam Investment and Finance have also taken considerable beating in this market turmoil.