Bajaj Auto Ltd. Strengthens Position as Nifty 50 Constituent with Upgraded Mojo Grade

Significance of Nifty 50 Membership

Bajaj Auto Ltd. holds a prominent position within the Nifty 50 index, a benchmark that represents the top 50 large-cap companies listed on the National Stock Exchange of India. Inclusion in this index not only reflects the company’s market capitalisation and liquidity but also ensures heightened visibility among domestic and global institutional investors. As a large-cap automobile stock with a market capitalisation of approximately ₹2,74,308 crores, Bajaj Auto’s index membership facilitates greater participation from mutual funds, pension funds, and exchange-traded funds (ETFs) that track the Nifty 50.

This status also imposes a degree of market discipline, as the company is subject to rigorous scrutiny regarding corporate governance, financial performance, and sectoral leadership. Consequently, Bajaj Auto’s consistent presence in the index signals its resilience and capacity to navigate cyclical industry challenges.

Institutional Holding Trends and Market Impact

Institutional investors have demonstrated increased confidence in Bajaj Auto, as evidenced by the recent upgrade in its Mojo Grade from Hold to Buy on 16 February 2026, accompanied by a robust Mojo Score of 74.0. This upgrade reflects improved fundamentals, valuation attractiveness, and positive technical indicators. The stock’s market cap grade remains at 1, underscoring its large-cap status and liquidity profile.

On 23 February 2026, Bajaj Auto’s share price closed at ₹9,820.20, trading just 2.43% below its 52-week high of ₹10,059.05. The stock has recorded a 0.98% gain on the day, outperforming the Sensex’s 0.52% rise, and has maintained a two-day consecutive gain, accumulating a 1% return over this period. Notably, Bajaj Auto is trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, signalling sustained bullish momentum.

These price dynamics are supported by institutional accumulation, which often precedes further upward movement. The company’s price-to-earnings (P/E) ratio stands at 30.68, below the automobile industry average of 34.28, suggesting relative valuation appeal for investors seeking exposure to the sector.

Comparative Performance and Sectoral Context

Over the past year, Bajaj Auto has delivered a total return of 16.41%, significantly outperforming the Sensex’s 10.54% gain. This outperformance extends across multiple time horizons: a 3-month return of 11.47% versus the Sensex’s negative 2.33%, and a 5-year return of 153.17% compared to the benchmark’s 67.33%. The company’s decade-long performance is particularly impressive, with a 313.28% gain against the Sensex’s 255.61%, highlighting its long-term value creation capabilities.

Within the automobile two- and three-wheelers sector, Bajaj Auto stands out as a leader. Among 417 stocks that have declared results recently, 134 reported positive outcomes, 237 remained flat, and 46 posted negative results. Bajaj Auto’s consistent earnings growth and market share expansion have contributed to its elevated Mojo Grade and investor confidence.

Benchmark Status and Investor Implications

As a Nifty 50 constituent, Bajaj Auto’s performance carries broader implications for index funds and passive investment strategies. Its inclusion ensures that any upward or downward movement in its share price directly influences the index’s trajectory, thereby affecting a wide array of portfolios. The company’s stable fundamentals and positive technical signals make it a favoured pick for both active and passive investors seeking exposure to the automobile sector’s growth potential.

Moreover, Bajaj Auto’s large-cap status and liquidity facilitate efficient price discovery and lower transaction costs, enhancing its attractiveness for institutional investors. The recent upgrade from Hold to Buy by MarketsMOJO analysts further reinforces the stock’s potential for capital appreciation, supported by strong earnings prospects and sector tailwinds.

Outlook and Strategic Considerations

Looking ahead, Bajaj Auto is well-positioned to capitalise on the growing demand for two- and three-wheelers in India and international markets. The company’s focus on innovation, cost optimisation, and expanding its product portfolio aligns with evolving consumer preferences and regulatory frameworks.

Investors should note that while the stock’s P/E ratio is below the industry average, it remains elevated relative to the broader market, reflecting expectations of sustained earnings growth. The stock’s technical indicators, including its position above all major moving averages, suggest continued momentum, but investors should remain vigilant to sectoral cyclicality and macroeconomic factors that could influence performance.

Institutional investors’ increased holdings and the recent upgrade in Mojo Grade to Buy provide a strong endorsement of Bajaj Auto’s prospects. This combination of fundamental strength and technical resilience makes the stock a compelling candidate for inclusion in diversified portfolios focused on quality large-cap automobile stocks.

Conclusion

Bajaj Auto Ltd.’s reinforced position as a Nifty 50 constituent, coupled with robust institutional support and favourable market dynamics, underscores its significance within the Indian automobile sector. The company’s consistent outperformance relative to benchmark indices and peers, alongside an upgraded investment grade, highlights its potential as a core holding for investors seeking exposure to the sector’s growth trajectory. As the automobile industry navigates technological shifts and market expansion, Bajaj Auto’s strategic initiatives and strong market presence position it favourably for sustained value creation.

Limited Period Only. Start at Rs. 9,999 - Get MojoOne for 1 Year + 3 Months FREE (60% Off) Get 71% Off →