A file photo of the BSE building in Mumbai.  (Photo: Bloomberg)
A file photo of the BSE building in Mumbai. (Photo: Bloomberg)

Bajaj Auto defies market sentiment; slips nearly 3% in early trade

  • The shares of Bajaj Auto opened at 3,071, but lost ground and touched 2,953.95, down 2.88%
  • Bajaj Auto was trading in the negative zone even as the broader market was trading with significant gains

Mumbai: Shares of Bajaj Auto defied the broader market sentiment on Monday and fell nearly 3% in morning trade on bourses.

Market experts said, though the fourth quarter earnings for the auto major was a good show in a tough environment, the company is expected to face margin pressure.

The shares of Bajaj Auto opened at 3,071, but lost ground and touched 2,953.95, down 2.88% over its previous close of 3,041.80.

Shares of the company were later trading at 2,992.10, down by 49.70, or 1.63% at 1021 hrs.

Bajaj Auto was trading in the negative zone even as the broader market was trading with significant gains. The stock was the biggest loser in the Sensex pack.

"While we believe that margin downgrade cycle (but for any change to product mix) is behind, focus on domestic market share and higher share of Africa in exports are likely to keep margin range bound," Edelweiss Research said in a note.

Edelweiss Research further noted that, a subdued demand environment, costs related to the entry in middle/executive segment (current market share of around 3%) and technological changes due to BSVI will restrict margin to the current level.

Bajaj Auto Friday reported a 19.82% increase in consolidated net profit at 1,408.49 crore for the fourth quarter ended March 31, 2019.

Meanwhile, the BSE benchmark Sensex was trading with gains of 903.70 points or 2.38% at 38,834.47 in early hours.

This story has been published from a wire agency feed without modifications to the text.

Close