Bajaj Auto slips 13% on weak festive demand

Near-term demand, margin woes weigh on company

- TANMAY TIWARY & RAM PRASAD SAHU

Bajaj Auto shares slipped as much as 13.31 per cent to hit an intraday low of ₹10,071 per share on Thursday. The decline followed a mixed response from both domestic and international brokerages to Q2 results and a weak start to the festive season. The stock ended the day with losses of 12.87 per cent and closed at ₹10,122 a share.

The company's operating profit missed the Street estimates due to a weak product mix in the Indian and global markets on a sequential basis, though the impact was softened by cost control measures.

The BSE Auto index was the worst performer among sectoral indices, slipping as much as 3.56 per cent to an intraday low of 56,731.79 before settling 3.48 per cent lower at 56,781.64. In comparison, BSE Sensex closed 0.61 per cent lower at 81,006.61.