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Bajaj Auto falls on weak sales, JPMorgan downgrade


Bajaj Auto shares fell for a second day as weak February sales continued to weigh on investors. Global investment bank JPMorgan downgraded Bajaj Auto to "underweight" from "neutral" and cut its target price to Rs 1,800 from Rs 2,060 earlier, leading to further selling in the counter.

The stock traded 1.5 per cent lower at Rs 1,960.15 as of 10.22 a.m. and was the top Nifty loser. Bajaj Auto shares underperformed the broader BSE Auto index, which traded with 1 per cent gains.

On Monday, Bajaj Auto said it sold 3,32,387 units in February, down 3 per cent as compared to last year. Analysts had estimated February sales at 3,45,000 units.

Two wheeler growth outlook is weakening, JPMorgan said, adding that competition is likely to intensify further in the industry.

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