Posted on March 4, 2025, by Niftynews
Bajaj Auto shares took another hit on Tuesday, dropping more than 3% to ₹7,475.70. This marks the seventh consecutive decline for the stock, which has now fallen by over 13% in the past week alone. The Bajaj Auto share price slump is particularly concerning as it reaches a 52-week low, signaling that market sentiment around the company is weakening. Despite a rise in exports, domestic sales have shown significant weakness, contributing to the stock’s ongoing decline.
Key Factors Driving Bajaj Auto’s Slump in Share Price
Bajaj Auto has been facing challenges in its domestic 2-wheeler sales, which fell by 14% in February 2025. The company sold 1.46 lakh 2-wheelers in India, a decrease compared to the 1.71 lakh units sold in February 2024. This drop in sales in the crucial domestic market has weighed heavily on the Bajaj Auto share price, especially as the company depends on its domestic market for a large portion of its revenue.
Despite the domestic struggles, Bajaj Auto has seen some growth in its exports. Exports rose by 23%, with the company selling 1.53 lakh units abroad in February. This positive development in exports has helped offset some of the domestic losses, but investors are still cautious about the company’s ability to recover in the short term.
Technical Analysis: Is Bajaj Auto Share Price Poised for Rebound?
According to Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, Bajaj Auto shares remain under pressure, with little indication of a bullish reversal just yet. Bhosale pointed out that while momentum oscillators are oversold, there are no clear signals for a turnaround in Bajaj Auto share price. He recommends waiting for a more significant base formation or a bullish candlestick pattern before considering an entry into the stock.
The next support level for Bajaj Auto shares is ₹7,050, with ₹8,000 serving as the key resistance point. As long as the stock continues to trade below the resistance level, there may not be a clear buying opportunity, and the downward trend could persist in the near term.
Performance Overview: Domestic Decline, Export Growth
Bajaj Auto’s February sales performance highlights a stark contrast between its domestic and export markets. While the company experienced a 14% decline in domestic 2-wheeler sales, the growth in exports remains strong. Total domestic sales for February 2025 decreased by 11%, with 1.83 lakh units sold. On the other hand, Bajaj Auto’s exports saw a 21% increase, reaching 1.69 lakh units.
This divergence between domestic sales and export performance reflects the complex challenges the company faces. Rakesh Sharma, Executive Director at Bajaj Auto, attributed the decline in domestic sales to negative consumer sentiment, which he described as unexpected. Despite these challenges, he remains hopeful for a rebound by late March to early April as broader economic indicators remain strong.
Should You Buy Bajaj Auto Shares Now?
For those considering investing in Bajaj Auto shares, the technical outlook suggests caution. While Bajaj Auto shares have reached a significant support level at ₹7,050, the stock has not yet shown signs of a reversal or trend change. It may be prudent for investors to wait for confirmation of a base formation or a bullish candlestick pattern before entering the stock. The broader market sentiment, combined with ongoing pressure in domestic 2-wheeler sales, suggests a cautious approach for now.
As the company navigates through its domestic challenges while benefiting from export growth, its share price could face continued volatility. For those looking for longer-term investments, it might be worth waiting for clearer signals of stabilization and growth in both domestic and international markets.
