Bajaj Auto wheels in caution, drags festive mood, its stock & peers
investors' favour on Thursday after Bajaj Auto guided for lower two-wheeler sales growth in its second-quarter results. Shares of Bajaj Auto — India's largest two-wheeler maker — plunged 13.1% on Thursday, the largest single-day fall since March 2020. The pessimism rubbed off on its peers Hero MotoCorp and TVS Motor, which fell over 3% each.
«Bajaj Auto has lowered its estimated growth for the two-wheeler motorcycle industry in the fiscal year 2025 to 5% YoY, down from the previous estimate of up to 8%,» said Shridhar Kallani, research analyst-auto at Axis Securities. «This cautious outlook has unsettled investors and also affected other major two-wheeler manufacturers.»
The Nifty Auto index fell 3.5% while the benchmark Nifty ended 0.89% lower. All 15 stocks constituting the index closed lower on Thursday. Analysts said higher sales volumes typically mark the festival season for automobile manufacturers, but Bajaj Auto's lower-than-expected growth estimates surprised investors.
«Two-wheeler stocks have outperformed significantly in the last year and given the higher valuations and muted growth expectation by the largest two-wheeler player, marginal disappointment leads to major falls,» said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
In the last year, the auto index moved 51.25% higher against an up move of 24.93% in the Nifty 50 index.
Stock Trading
Commodity Markets Made Easy: Commodity Trading Course
By — elearnmarkets, Financial Education by StockEdge
Stock Trading
Technic
