Bajaj Auto, SBI Life, Bajaj Finance, Adani Enterprises, Eternal, Trent and HDFC Life were among major gainers on Monday. Overall market sentiment was neutral during early trades with NSE Nifty trading almost flat. Bajaj Auto and Hero MotoCorp were trading firm after Indian Government's GST changes are expected to raise demand for vehicles. Investors have also turned bullish on HDFC Life and SBI Life Insurance. TopNews Team has reviewed technical levels for buzzing stocks.

Bajaj Auto: GST Windfall Ignites Demand Revival

Bajaj Auto’s decision to slash ex-showroom prices by as much as ₹20,000 on its two-wheelers and ₹24,000 on three-wheelers, following the September 2025 GST reform, has reset the competitive landscape. The timing—immediately preceding the festive season—has industry insiders touting it as the most aggressive pricing initiative in recent memory from a tier-one manufacturer. Notably, the move encompasses flagship Bajaj models as well as KTM motorcycles, cementing Bajaj’s commitment to passing on the GST benefit in full.

As Rakesh Sharma, Executive Director at Bajaj Auto, remarked, “The government’s decision to reduce GST for most two wheelers and three wheelers is a bold step forward, which will unlock their demand and set the industry on a firm growth path.” The reach of this policy shift goes beyond mere affordability; it touches urban commuters, rural families, and small business owners—all chief buyers in India’s demand-driven two- and three-wheeler market.

Forecasts from leading brokerages suggest the GST rate cut could deliver double-digit volume growth for the sector in Q3 FY26. Bajaj Auto, with its robust pan-India distribution and export muscle, is especially well-positioned to benefit from a structural demand boost, both domestically and abroad. The industry consensus: this is not a blip but a paradigm shift for mobility manufacturers as affordability and aspirational demand collide during a make-or-break sales quarter.

Financial Performance and Defensibility

For the quarter ending June 2025, Bajaj Auto posted a 5% rise in standalone net profit to ₹2,096 crore, while quarterly revenue advanced 6% year-on-year to ₹12,584 crore. The present round of price cuts, while likely to exert some downward pressure on average selling prices (ASPs) and near-term margins, is widely expected to be offset by a sharp increase in sales volumes during the festive quarter. This supply-side optimism is echoed by analysts who see Bajaj Auto’s diversified vehicle portfolio—and its leadership in EV and premium motorcycle segments—as pivotal shields against margin compression.

Market researchers from Motilal Oswal, JM Financial, and HDFC Securities have collectively labeled the GST-triggered price reductions as a “game changer,” with near-term volume surges and potential Q3-Q4 upward revisions a strong likelihood.

However, some caution is warranted on the sustainability front. While leadership in electric mobility offers resilience, the competitive response—particularly in pricing—bears close monitoring. Longer-term margin health will ultimately hinge on the product mix, cost control agility, and Bajaj’s ability to outperform both legacy and emerging players in India’s ever-intensifying mobility sector.

SBI Life Insurance: Relentless Uptrend and Institutional Endorsement

SBI Life Insurance has become a darling among market participants, propelled by a remarkable 24% gain in its share price over the last half-year, closing at ₹1,841.70 as of September 19, 2025. The share is now brushing up against its 52-week high of ₹1,927.95, with recent weekly gains and bullish technical crossovers steering investor confidence. The recent stochastic crossover, in particular, registered on the week ending September 19, has historically foreshadowed average returns of nearly 6% within two months—a statistic not lost on momentum traders and quant desks.

SBI Life's fortress-like balance sheet, with zero net debt for five years and robust contingent liability coverage, continues to attract institutional inflows and underpins its reputation among fund managers seeking risk-adjusted returns. The valuation narrative is equally compelling, with a Price-to-Earnings (PE) ratio of 74.19 and a Price-to-Book (PB) of 10.75, pricing in both growth and defensiveness as sector-wide regulatory reforms loom on the horizon.

Technicals and Analyst Consensus

The persistent rally in SBI Life shares is fueled by a consensus that remains overwhelmingly positive. Mirae Asset Sharekhan, ICICI Securities, and Kotak Institutional Equities all see 24% upside in sector valuations, with SBI Life’s intrinsic “Buy” rating anchored by embedded value growth, industry-leading cost efficiency, and a solid solvency ratio. Currently, 33 analysts endorse the stock with a “Buy” consensus, citing sector-wide insurance premium growth and outstanding operational discipline.

Mutual fund block buying and reinvigorated retail participation have further buoyed the stock, landing it among the most prominent insurance holdings on Dalal Street. Valuation metrics, shown in the table below, highlight the premium attached to SBI Life's growth prospects:

Despite the bullish story, investors are cautioned about potential regulatory swings and any material deterioration in persistency ratios. Still, recent institutional block deals and technical breakouts suggest strong, sustained momentum—absent external shocks or broad sectoral headwinds.

Bajaj Finance: Momentum Breakout and Growth Story

If there’s one NBFC stock riding high on technical and fundamental conviction, it is Bajaj Finance. The past month has seen a masterful breakout from a Cup & Handle formation on daily technical charts, driving an 11.79% surge in share price, outperforming most NBFC peers and the broader market. The rally, which lifted the stock to ₹1,025 by mid-September, brought a fresh round of “Buy” recommendations from analysts tracking the sector.

Economic Times’ “Stock Radar” column spotlighted this momentum, as experts posited further 2–3 month price targets in the ₹1,170–₹1,180 range, attributing the run to strong buying by both retail and institutional participants.

The median intrinsic value model, as of September 19, pegged Bajaj Finance at a 6% discount to fair value, supported by a PE ratio of 35.07 and PB of 6.45 on trailing revenue of ₹73,106 crore. This signals both a premium stock and a rare pocket of plausible undervaluation, justified by the company’s consistent earnings expansion, low NPAs, and expanding digital product bouquet.

Resilience Amid Short-Term Swings

Technical sentiment is reinforced by a bullish MACD crossover, which on past occurrences has translated to an average upside of more than 11% within 7 weeks. That said, some short-term caution was flagged via a daily 5-day EMA crossover, historically hinting at a minor pullback of around 2.4% over the following week as some profit-taking emerges after record highs. For investors with a longer time horizon, these brief consolidations often set up renewed accumulation phases.

Leading brokerages including Axis Securities, ICICI Direct, and Prabhudas Lilladher maintain strong Buy ratings, arguing that Bajaj Finance’s digital lending expansion, sharply reduced NPAs, enhanced cross-selling capabilities, and growing retail franchise continue to set it apart within the NBFC landscape. While sector-wide risks—such as rising retail delinquencies and increased regulatory scrutiny—are not to be ignored, Bajaj Finance’s proactive risk management and robust digital backbone provide much-needed defensibility.

Strategic Takeaways: Positioning for India’s Next Upcycle

The convergence of government reform (GST cuts), robust fundamental performance, and technical strength across Bajaj Auto, SBI Life, and Bajaj Finance is re-shaping sectoral narratives in Indian equities. For investors, the actionable insight is clear: focus on companies with market leadership, operational discipline, and agility in responding to policy and macro shifts.

• Bajaj Auto stands to lead a consumption uptick as GST reforms catalyze mobility demand and festive sentiment, offsetting margin worries through sheer volume and cost rationalization.
• SBI Life embodies the safe-haven play—strong premium growth, technical tailwinds, and sector-leading return metrics—but vigilance on regulatory developments remains key.
• Bajaj Finance continues to set the NBFC benchmark for digitization, cross-selling, and capital efficiency. Momentum remains powerful, though investors should stay attuned to profit-taking phases and sectoral credit trends.