Will Bajaj Housing Finance's IPO fuel growth in other housing finance stocks?

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Subscribe to enjoy similar stories. The recent ₹6,560-crore initial public offering (IPO) of Bajaj Housing Finance, which was oversubscribed nearly 67 times, underscored the ongoing frenzy around IPOs in India. The sheer demand – translating to bids worth more than ₹4 trillion – highlights the immense trust investors place in established corporate giants like Bajaj and Tata.

These household names instill confidence, prompting widespread belief that such investments are almost foolproof. But how many of these IPO applicants can truly be called investors? A large portion of the market is traders, driven by the promise of quick gains rather than long-term value.Are you one of them? Bajaj Housing Finance debuted with an exceptional gain of 135% to close its first trading day at ₹164.99, prompting the question: will this fuel growth in other housing finance stocks? Also read: How high can gold prices zoom if a full-fledged war breaks out Given the promising signs from the sector, we believe it may. Below, we examine three housing finance stocks showing bullish momentum.

But before we get to them, it’s crucial to analyse the performance of the Nifty Realty Index, the backbone of this sector. The Nifty Realty Index has consistently outperformed since 2022, signaling a strong bull market in the real estate sector. The index's multi-year breakout in late 2021 was retested in early 2022, after which the bulls took control, pushing the index from 350 to over 1,100.

A series of higher highs and higher lows, a classic Dow Theory signal, confirmed the bull run. The upward slope of the 50-week exponential moving average (50WEMA) and the 200WEMA is further evidence of a strong trend. The surge in realty stocks, driven by rising demand