A simple statement by a two-wheeler major that “the festive season is not panning out as expected” saw its stock tank 11% in a single session. Other players in the same space also witnessed sharp falls. One can argue that a large-cap stock with close to 100% gain in the last year is prone to such a correction. But it is also an indication that things are priced to perfection. A slight disappointment, and the reaction will be strong as valuations are either high or very high. There is nothing called value in the market. This begs the question: Is Bajaj Auto’s experience a one-off – something only a part of the auto industry is witnessing? Or is it an indication of broader festive season spending – or the lack thereof?
