Bajaj Auto Leads Nifty 50 Gainers This Week

The second trading week of March witnessed a half per cent rise for benchmark indices Nifty and Sensex. Sensex crossed the 74,000 mark and successfully maintained trading above it. Nifty also reached record highs, closing the week at 22,493.

Notably, Bajaj Auto outperformed both the Nifty50 and its index peers with massive gains of more than 10 per cent. The stock closed with a 3.18 per cent gain at Rs. 8,879 on the National Stock Exchange (NSE) in Thursday's trading session.

The initial gains occurred ahead of the auto firm's Rs. 4,000 crore buyback, equivalent to 1.41 per cent of the firm's equity shares. The record date for the buyback was set on or before 29 February.

“The stock has given a good breakout above its all time high mark of Rs 8,650 surging almost 3 per cent in Thursday’s session. Overall trend is looking positive as the stock continues to make higher highs and higher lows. On any pullback the stock should see good demand near Rs 8,500 to 8,650 levels. A minor hurdle near Rs 9,000 mark above which the stock should likely continue its rally towards Rs 9,500 and 10,000 levels,” said Riyank Arora, Technical Analyst, Mehta Equities. 

Bajaj Auto announced its buyback plan in January 2024, which commenced on 6 March for Rs. 10,000 per equity share, nearly a 20 per cent premium from its closing price on Tuesday, 5 March. The buyback window will close on 13 March.

Additionally, the firm reported a 24 per cent year-on-year (YoY) increase in its February sales, rising to 3,46,662 from 2,80,226 in the same period last year, according to a regulatory filing.

Bajaj Auto attributed its 10.42 per cent gain to the Nifty50 and Nifty Auto index, emerging as the top gainer stock for the week.