Bajaj Auto shares rise 4% on strong August sales update, Nifty Auto index snaps three-day losing streak, jumps 2.8%

Shares of Bajaj Auto Ltd climbed 4% on September 1 following a 5% year-on-year rise in total sales for August, marking the company's strongest monthly growth in three months. Notably, two-wheeler sales saw their first increase in that period, driven solely by export demand, while domestic shipments declined for the third month in a row.

In August, Bajaj Auto dispatched 341,887 two-wheelers, reflecting a 2% annual increase. However, sales within India dropped by nearly 12% to 184,109 units. In contrast, exports surged by 25% to 157,778 units, the highest since November, when overseas sales reached 164,465 units. Exports made up 46% of the total two-wheeler sales in August—higher than the 38% share a year earlier, but lower compared to 53% in July and 50% in May.

On September 1, Bajaj Auto shares closed trading 4% higher at Rs 8,978 apiece. The stock helped Nifty Auto index notch gains after it fell for three consecutive sessions. On September 1, Nifty Auto index closed trading 2.8% higher at 25,660.

What has also aided the bullish sentiment for auto stocks is PM Narendra Modi's visit to China's Tianjin where India is expected to press China for fair trade arrangements and continued access to critical imports, including rare earths.