JPMorgan cuts Bajaj Auto to underweight

Reuters Market Eye - J.P. Morgan Securities lowers its rating on Bajaj Auto Ltd to "underweight" from "neutral" and cut its target price to 1,800 rupees from 2,060.

J.P. Morgan cites a weakening outlook for two-wheeler growth due to rising fuel prices and high inflation.

The investment bank also notes competition is set to intensify as rivals Hero MotoCorp Ltd and Honda Motor Co Ltd <7267.T> raise capacity.

As of 12:35 p.m., Bajaj Auto shares are down 1.4 percent at 1,960.75 rupees.

(Reporting by Manoj Dharra)