Bajaj Finance shares gained over three percent on Friday as investors likely opted for bargain buying after the stock's recent underperformance. The stock closed 3.97 percent higher at Rs 5,614.8 on the BSE.

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The stock lost nearly 12 percent in the June derivative series, much higher than the 2.4 percent fall in the Nifty50, during the period. With today's gains, the stock has snapped a three-day losing streak.

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With that, Bajaj Finance has also increased its Fixed Deposit (FD) rates by up to 20 basis points (bps). All deposits made on or after July 1, 2022, will be subject to the increased interest rate up to 7.75 percent per annum.

Traders were largely active at the Rs 5,600-Rs 5,900 strike price call options, anticipating the stock to test these levels going ahead. Meanwhile, premiums across most out-of-the-money put options witnessed a double-digit fall.

Also read: Bajaj Finance Q4 results: Co reports highest ever net profit at Rs 2,420 crore

Bajaj Finance is one of the most diversified NBFCs in the Indian market, with offerings such as commercial lending, co-branded credit cards, two-wheeler and three-wheeler loans, among others.

According to Deepak Shenoy, Founder, Capitalmind, the auto cycle is likely to start looking better by the end of the year as steel prices come down.

“I have a lot of investments in this space, so quite biased. But I think here's a four-year cycle — a down cycle in a way — which should start recovering here,” said Shenoy.

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