Bajaj Auto shares gain for 12th straight day, surge past ₹10,000 milestone – here's why
₹10,000 mark for the first time in today's trade to hit a new all-time high of ₹10,038 apiece by gaining 0.77%.The stock's surge today has propelled it to achieve a 47% gain in the current year so far and an 115% increase over the past one year. Starting from its low of ₹3,636 per share in March 2023, the stock is currently trading at a remarkable 174% increase.
In the current year so far, the company's market capitalisation surged from ₹1,89,221 crore to ₹2,78,202 crore.Also Read: Bajaj Auto, M&M, Ashok Leyland among preferred picks as auto stocks race aheadThe recent surge in auto stocks to new record highs has been propelled by several key factors, prominently bolstered by increased investor confidence. Expectations are rising that the new coalition government, comprising the BJP and its allies, will prioritise rural spending over capital expenditure, diverging from previous strategies.Increased investment in rural areas typically translates into higher disposable incomes for rural consumers.
Given that two-wheelers are popular modes of transportation in rural regions, this surge in disposable income could significantly boost demand for two-wheelers.Moreover, two-wheeler sales showed improvement in May, supported by improved sentiment, the absorption of price hikes, new model launches, and a gradual recovery in rural markets, resulting in robust year-to-date growth.Also Read: Auto stocks in top gear: What's driving the rally? Experts recommend 10 stocks to buy from the sectorDespite challenges such as the Red Sea crisis, two-wheeler exports demonstrated solid year-on-year growth. Temporary softness observed in the sector during May was attributed to union elections nationwide, with expectations of a rebound in growth
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