Why did the shares of Ola Electric and Bajaj Housing Finance crash, know the full details
Monday’s trading day in the Indian stock market was also not much different from the previous days. A huge decline is being seen in the shares of most companies. Stocks of Ola Electric and Bajaj Housing Finance have also fallen sharply. Both these companies have recently been listed in the stock market by bringing IPO. Let us know what is the reason for the heavy selling in their shares.
Why is there a decline in Ola Electric shares?
Ola Electric was trending on the social media platform X on Sunday regarding its poor product quality and service center. Actually, stand-up comedian Kunal Kamra accused Ola Electric in one of his posts that the company’s products are very bad. Ola’s customers have to constantly visit the service center and the company does not solve their problems.
On this, Ola Electric founder Bhavish Aggarwal retorted and called Kunal Kamra a flop comedian. He made many more personal attacks on Kamra. However, in reply to Bhavish’s post, many users supported Kamra and said that Ola Electric’s scooters are really very bad and the company’s service center is even worse. Customers are treated very badly there.
The fall in Ola’s shares today is being linked to the same social media controversy. Ola Electric’s shares fell by about 9 percent today to Rs 89.55. Now it has fallen about 45 percent from its all-time high. By around 1.25 pm, Ola’s stock was trading at Rs 90.19, down 8.94 percent.
Why did Bajaj Housing crash?
Bajaj Housing Finance’s IPO created a stir by giving a spectacular listing gain of 114 percent on listing. However, market experts were constantly saying that its valuation was much higher than that of its peer companies. This is the reason why Bajaj Housing shares showed a rise for two-three days after listing and then the decline started.
Brokerage firm HSBC has given Bajaj Housing a target price of Rs 110 per share with a ‘reduce’ rating. This was 27 percent less than the closing price of Bajaj Housing Finance shares on BSE on October 4. HSBC has described Bajaj Housing as a good stock. But, it says that the current price of the shares does not match the performance of the company.
Read More: Is Bhavish Agarwal’s Ola Electric following the path of Micromax? Will it be ruined?
Bajaj Housing Finance shares saw a big decline on Monday. Bajaj Housing Finance shares fell by about 9 percent to Rs 137.01 during trading. At around 1.25 pm, Bajaj Housing stocks were trading at Rs 138.47 and Rs 139.30, down 8.05 percent.
