Competition fears hit Bajaj Auto
DALAL STREET SPIKES
| The stock plunged 3.53 per cent on sustained selling pressure from domestic as well as foreign institutional investors. The counter witnessed a volume of 86,252 shares on the Bombay Stock Exchange. |
| The stock ended at Rs 819.75 after touching an intra-day low of Rs 795. According to market sources, the auto sector is witnessing profit-booking at higher levels after a recent rally in most counters. |
| However, in the long-run, the automobile sector is expected to outperform the market, said an analyst. An automobile sector analyst said Bajaj Auto is already facing stiff competition from 2-wheeler major Hero Honda, which is slowly eating into its market share. |
| Also, Honda Motors' plan to launch two motorcycles by mid-year is expected to hit Bajaj Auto's market share. |