Bajaj Finance shares surged on Tuesday, taking the market capitalisation of the non-banking financial company to the Rs 4.25 lakh crore mark. With that, Bajaj Finance surpassed State Bank of India (SBI), the country's largest lender by assets.

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At 2:00 pm, the Bajaj Finance stock traded 3.40 percent higher at Rs 6,983.35 apiece on BSE. At this level, its market value stood at Rs 4.22 lakh crore, much higher than SBI's Rs 3.71 lakh crore, as the bank's shares traded up 1.56 percent at Rs 415.70 apiece.

Both stocks outperformed the benchmark S&P BSE Sensex index, which was up 0.68 percent and headed towards an all-time high clocked last week.

Bajaj Finserv, the parent of Bajaj Finance, received an in-principle approval from market regulator Sebi for sponsoring a mutual fund. Bajaj Finserv will set up an asset management company and a trustee company directly or indirectly in accordance with applicable laws, it said in a regulatory filing.

The announcement sent the Bajaj twins soaring.

"Is the market kind of jumping the gun a bit? Of course, I am sure they will be able to set up a fairly robust company over a period of time. But it is very unlikely that their asset management business will form any significant percentage of their business for a long time to come," market expert Anand Tandon told CNBC-TV18.

"If you think there is value in the other businesses and Finserv as it is, perhaps you may want to continue holding on to it. Otherwise, it still looks to me something that is a pop that you may want to use to get out," he said.

Having switched places with SBI in terms of market value, Bajaj Finance is now the eighth-most valuable company in the country.

In the ranking of most valuable Indian companies, Reliance Industries maintained its position at the top spot with Rs 13.85 lakh crore, followed by TCS (Rs 13.42 lakh crore), HDFC Bank (Rs 8.64 lakh crore) and Infosys (Rs 7.32 lakh crore).

HUL (Rs 6.17 lakh crore), HDFC Bank (Rs 4.85 lakh crore) and ICICI Bank (Rs 4.79 lakh crore) are next on the list.

First Published:Aug 24, 2021 2:33 PM IST