Bajaj Auto Shares Plummet 10% – What’s Behind the Sudden Drop?
CinemaCurry
Bajaj Auto shares dropped over 10% in early trade, the company's sharpest decline since March 2020.
The fall followed Bajaj Auto's projection of just 1%-2% growth in motorcycle sales for the October-November festive season, significantly lower than the expected 5%-6% growth.
The cautious sales outlook sparked investor concerns, leading to a widespread dip across the two-wheeler industry.
Shares of competitors like Hero MotoCorp and TVS Motor also dropped by around 5% as market sentiment turned cautious.
Rising inflation and high food prices have curbed consumer spending, particularly impacting festive season sales.
Retailers have reported a trend of consumers scaling back on expensive purchases, contributing to the weaker outlook.
Despite reporting quarterly profit growth, Bajaj Auto’s stock was already trading at elevated valuations, which limited further gains.
As the first major two-wheeler manufacturer to announce its Q2 results, Bajaj Auto's outlook has set a cautious tone for the broader auto industry.