Why is Bajaj Auto stock tumbling today?

Bajaj Auto's stock price plummeted by 7.4% to ₹10,066 on Thursday, following a decline in the company's domestic sales for September. The automaker reported a 9% decrease in total domestic sales, dropping to 294,000 units compared to the previous year. Export sales also took a hit, falling 13% to 244,000 units. However, overall September sales for Bajaj increased by 5% year-on-year to 538,000 units.

The drop in domestic sales raised concerns about the rapidly falling demand for automobiles in India, exacerbated by growing economic uncertainty and a significant increase in crude oil prices. Bajaj was among the worst performers in the Nifty 50 index. On a broader market note, Indian equities opened the trading session on October 1 in a weak state, with the Sensex falling and the Nifty sliding towards the 22,600 level.

The decline was widespread across various sub-indices, with Bajaj Auto and Mahindra & Mahindra being major losers of the day. The global macroeconomic environment, especially the rising crude oil prices that directly impact vehicle manufacturers' input costs, as well as mixed signals from international markets, kept institutional investors on the sidelines.