Nomura downgraded Bajaj Auto to 'neutral' from 'buy', saying the Indian auto maker's valuations of 15.5 times fiscal 2014 earnings have priced in expectations of improving market share.
The downgrade comes even as Nomura says it still believes Bajaj Auto can continue to beat market leader Hero MotoCorp over the next few months.
Bajaj Auto has gained 30.8% so far this year versus a 25% gain in the BSE Sensex and a fall of 2.2% in Hero MotoCorp.
