Bajaj Auto Falls 0.7% Amid Market Volatility, June 11

Indian equity markets stumbled on June 11 as geopolitical tensions and inflation concerns weighed on investor sentiment. Bajaj Auto fell 0.69% to 10,114 INR, while broader market weakness dragged down other Bajaj group stocks. Retail mutual fund inflows collapsed 40% in May to 22,908 crore INR, the lowest in over a year, signaling investor fatigue amid market volatility.

Bajaj Auto Slides on Market Weakness

Bajaj Auto fell 70 INR to 10,114 INR on NSE, a 0.69% decline. The stock trades at a PE ratio of 26.37, with Meyka assigning a B+ grade and a 12-month price target of 11,023.67 INR, implying 9% upside. Technical indicators show the RSI at 46.41, suggesting neutral momentum. The stock remains down 5.3% over one month but up 8.6% year-to-date.

Broader Bajaj Group Weakness

Bajaj Finserv fell 2.80% to 1,645 INR, while Bajaj Consumer Care dropped 2.74% to 566.25 INR. Bajaj Electricals declined 2.35% to 304.95 INR, with Meyka rating it C+ and recommending a sell. The group-wide decline reflects broader market pessimism rather than company-specific issues. Finserv carries a B rating with a 12-month target of 2,120.32 INR, suggesting limited upside from current levels.

Market Turmoil Driven by Geopolitical Risk

The US initiated fresh strikes against Iran, prompting Tehran to threaten closure of the Strait of Hormuz. Brent crude surged 2.47% to 95.40 USD per barrel, while WTI rose 2.89% to 92.63 USD. US consumer inflation hit 4.2% in May, the fastest pace in three years. These factors combined to trigger a sharp selloff in Indian equities, with Nifty 50 slipping 0.12% to 23,214.95 on June 10.

Retail Investors Pause Amid Volatility

Net inflows into equity mutual funds fell to 22,908 crore INR in May, a 40% drop from April’s 38,440 crore INR. This marks the lowest monthly inflow in over a year. Flexi cap funds saw inflows plunge to 5,176 crore INR from 10,148 crore INR, while sectoral funds fell to 648 crore INR from 1,949 crore INR. Analysts at Bajaj Broking noted the decline was broad-based across large cap, mid cap, and small cap segments.

Final Thoughts

With Meyka rating Bajaj Auto B+ and targeting 11,023.67 INR, the stock offers modest upside despite near-term weakness. Investor caution and geopolitical risk will likely cap gains in the short term.

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