Bajaj Auto stock price declines as company cuts production
Written by - Fisdom Research
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February 27, 2023
4 minutes
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Daily Snippets
Date: 27th February 2023
SENSEX 59,288 (-0.30%)▼
NIFTY 17,393 (-0.42%)▼
Indian Markets:
Nifty 50 Movement: Indices Nifty 50 dropped by 73.10 points or 0.42% to finish at 17,392.70.
The broader Nifty50, saw 7 days of non-stop selling, stooped below the Budget day low of 17,353.40 before paring some of the losses.
The combined market capitalization of all BSE-listed stocks today fell down to Rs 258 lakh crore. Sectoral indices of IT, metals and media lost between 2-4% each. Realty stocks, however, defied the grim mood.
Indian markets are reflecting bearish sentiments dominating global markets. The Dow Jones fell 3% last week in its fourth straight weekly decline.
Global Markets:
The Dow Jones futures were up 144 points, indicating a positive opening in the US stock market today.
European shares advanced while Asian shares fell across the board on Monday, after major indexes on Wall Street recorded their worst week for 2023.
The US stocks declined on Friday, following a bigger-than-expected increase in the latest reading for personal consumption expenditures, the Federal Reserve’s preferred inflation gauge.
The personal-consumption-expenditures price index showed the cost of U.S. goods and services jumped 0.6% in January, according to a Bureau of Economic Analysis report Friday.
The more closely followed core index, which is the Fed’s preferred inflation measure, also rose 0.6% in January, climbing 4.7% over the past 12 months.
Stocks in Spotlight:
Bajaj Auto plans to cut down production in the two-and three-wheeler segments by up to 25 percent at its export-focused plants. The decision is triggered by uncertainties in Nigeria, which is the company’s biggest market. According to the report, Bajaj Auto is expected to manufacture approximately 250,000-270,000 units in March, significantly lower than its average production of 338,000 units a month during the initial nine months of FY23.
Mphasis’s management said that deal wins were taking longer to convert into revenue in the current macro environment, following which foreign brokerage firm Citi has a ‘sell’ rating to the stock. Adding to the woes, the company is also facing the ire of freshers on Twitter regarding delays in onboarding.
Sanofi’s drugmaker’s net profit increased 45 percent on-year as a strong operating performance offset the 2.3 percent decline in revenue. Its EBITDA margin jumped 635 basis points to 24.84 percent on the back of a fall in input costs.
News from the IPO world?
Divgi Torqtransfer sets IPO price band Rs. 500-590 a share
