Bajaj Finance share price: The shares of Pune-based nonbanking financial corporation Bajaj Finance surged 7.5 per cent to an intraday high of Rs 7,400 apiece on the National Stock Exchange on Friday, marking its most substantial intra-day jump in nearly two years. The surge comes in the wake of the Reserve Bank of India's decision to lift a five-month ban imposed on some of the non-banking lender's lending products.

Since the ban was imposed back in November, Bajaj Finance's stock had fallen by almost 5 per cent. Last Friday, the shares of Bajaja Finance saw a 7.7 per cent slide after the company provided a less-than-optimistic forecast for the current fiscal year, largely attributed to the ban's impact.

Analysts from Morgan Stanley expressed optimism following the RBI's reversal, suggesting that the overhang on Bajaj Finance had been lifted. They anticipate a potential relief rally for the stock, which had been under pressure post-results last week.

Estimations from the brokerage suggest that the ban's impact on profit before tax might be limited to 1.5 per cent in the April-June quarter, a notable improvement compared to the nearly 3.5 per cent hit witnessed in the preceding January-March quarter.

Analysts at CLSA noted that the market's attention is likely to shift towards fundamentals following the RBI's decision.

The ripple effects of the ban's removal were also evident in Bajaj Finserv, the holding company of Bajaj Finance, whose shares surged by 3.9 per cent.

Despite the recent turmoil, Bajaj Finance's stock performance for the year remains relatively stable, with marginal changes observed thus far, compared to the broader finance index's 2.8 per cent gain and the benchmark Nifty 50 index's 4.8 per cent rise.

(With Reuters inputs.)