Auto stocks have lost some steam post the announcement of the monthly sales numbers. However, Bajaj Auto bucked the trend and recovered from day’s low of Rs. 2,426 to close higher by 1%. Commenting on the same, Amar Ambani, Head of Research, IIFL, said, “Bajaj Auto, for November 2015, reported flat volumes on yoy basis. However, domestic volume growth of 20.1% yoy was a positive surprise. Motorcycle volumes were higher by 20% yoy in the domestic market driven by success of the new launched Avenger series. In the domestic three-wheelers as well the company saw an industry beating growth of 24% yoy. The export market performance, however, was disappointing owing to macro issues in the major exporting countries of the company. In terms of outlook, continued success of the new launches will be critical for Bajaj Auto in the domestic motorcycle market while export market will continue to see volatility considering the macro issues.”
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