Bajaj Auto Faces Decline Amid Broader Automobile Sector Weakness and Market Volatility

Bajaj Auto has experienced a notable decline of 3.18% on May 20, 2025, marking a reversal after six consecutive days of gains. The stock's performance today underperformed the sector by 0.34%, with an intraday low of Rs 8,553.9, reflecting a drop of 3.3%. Despite this downturn, Bajaj Auto's moving averages indicate that it remains above the 5-day, 20-day, 50-day, and 100-day averages, although it is trading below the 200-day moving average.
In the broader market context, the automobile sector, particularly the Two & Three Wheelers segment, has also seen a decline of 2.83%. The Sensex opened flat but subsequently fell by 866.25 points to 81,249.92, a decrease of 0.99%. While Bajaj Auto's one-day performance shows a decline of 2.99%, its one-week performance remains strong at 6.41%, and it has outperformed the Sensex over the past month with a gain of 7.27%. However, over the longer term, Bajaj Auto's performance has been mixed, with a 3-month decline of 0.58% and a 1-year drop of 2.63%, contrasting with the Sensex's positive trajectory.