Bajaj Auto Faces Bumpy Ride
- 30th May 2025
Aaj Ka Bazaar
Indian benchmark indices traded higher today and closed in positive territory, buoyed by news that the US trade court has blocked most of President Donald Trump’s proposed “Liberation Day” import duties. The Court of International Trade ruled that President Trump exceeded his authority with the proposed tariff plan. The Nifty 50 gained 81.15 points to end at 24,833.60, while the Sensex rose by 320.70 points to close at 81,633.02. Broader markets also ended higher. On the sectoral front, most indices ended in the green, with the Nifty Metals index leading the gains, followed by Nifty Realty. However, Nifty FMCG and Nifty PSU Bank ended in the red. On the stock-specific front, Sterling & Wilson Renewable Energy Limited (SWREL) rose over 2% after the company announced it had emerged as the L1 (lowest) bidder for a turn-key EPC contract to develop a 225 MW (AC) grid-connected solar PV project in Gujarat, India.
Markets Around Us
BSE Sensex – 81,499.13 (-0.16%)
Nifty 50 – 24,838.40 (0.02%)
Bank Nifty – 55,625.35 (0.10%)
Dow Jones – 42,183.03 (-0.08%)
Nasdaq – 19,175.87 (0.39%)
FTSE – 8,716.45 (-0.11%)
Nikkei 225 – 37,893.26 (-1.40%)
Hang Seng – 23,228.80 (-1.46%)
Sector: Automobile
Bajaj Auto Q4 Misses Estimates, Margin Steady
Bajaj Auto’s Q4FY25 performance was affected by weak domestic demand and a halt in KTM exports. Despite this, the overall quality of growth looks promising. Looking ahead into FY26, we remain cautiously positive. The company is expected to benefit from better rural demand and last year’s low base, which should help volume growth. However, the recovery in urban demand is still slow, which could impact the sales of higher-end bikes and limit any major improvement in profit margins. In the near future, gains from better product pricing may be limited. Key points to watch include management’s outlook on volume growth for FY26, consumer demand trends in India, upcoming product launches, and how they expect profit margins to shape up. Overall, while some challenges remain, there are also signs of a possible recovery in the coming quarters.
Why it Matters:
This matters because Bajaj Auto is a major player in the Indian auto sector, and its performance reflects broader trends in consumer demand, especially in rural vs urban markets. The Q4 miss highlights ongoing challenges, but resilient margins show operational strength. Investors should watch upcoming volume and margin guidance closely for future direction.
NIFTY 50 GAINERS
ETERNAL – 230.54 (0.95%)
BAJAJFINSV– 2023.70 (0.64%)
RELIANCE – 1426.50 (0.61)
NIFTY 50 LOSERS
BAJAJ- AUTO – 8651.50 (-2.51%)
HINDALCO – 638.10 (-1.83%)
TECHM – 1574.20 (-1.61)
Sector : Real Estate
Sunteck Realty Limited announced on May 29 that its wholly-owned subsidiary has been appointed to develop a residential project in Andheri East, Mumbai. The project is planned on a 2.5-acre land parcel (approximately 10,290 square meters) located near the Western Express Highway, a well-connected and sought-after area in the city. In a regulatory filing, the company stated that this new development is expected to yield a free sale area of approximately 2,75,000 square feet. The project involves both development and redevelopment components, and is part of Sunteck’s broader strategy to expand its residential portfolio in key micro-markets of Mumbai. This strategic addition reinforces Sunteck’s focus on premium urban developments and further strengthens its presence in the western suburbs of Mumbai. Given the location and size of the project, it is expected to attract significant interest from end users and investors alike, offering high potential for long-term value creation.
Why it Matters:
This project strengthens Sunteck Realty’s presence in a prime Mumbai location with high demand for residential spaces. The 2.5-acre plot near Western Express Highway offers strong connectivity and redevelopment potential. With 2.75 lakh sq. ft. of saleable area, it could drive significant revenue and brand visibility.
Around the World
Asian stock markets fell on Friday due to renewed concerns over U.S. tariffs after a court reinstated them, reversing an earlier block. Chinese stocks were hit hardest, dropping up to 1.5%, after U.S. Treasury Secretary Bessent said trade talks with China had stalled, reducing hopes for a long-term deal. Tensions rose further with both sides imposing tech-related restrictions. Japan’s markets also slipped, as higher-than-expected inflation data raised chances of a rate hike in July, while the yen strengthened, putting pressure on exporters. Despite weak inflation in retail sales, Australia’s market remained flat, hinting at possible rate cuts. South Korea and Singapore also saw minor declines, with tech stocks losing steam. Meanwhile, India’s Gift Nifty 50 futures edged up 0.1%, indicating a positive start as the index stayed firm just under 25,000. Investors are now eyeing U.S. PCE inflation data for clues on the Fed’s next move.
Option Traders Corner
Max Pain
Nifty 50 – 24850
Bank Nifty – 56000
Nifty 50 – 24801 (Pivot)
Support – 24,709, 24,585, 24,494
Resistance – 24,925, 25,016, 25,140
Bank Nifty – 55475 (Pivot)
Support – 55,167, 54,788, 54,481
Resistance – 55,853, 56,161, 56,540
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