Bajaj Auto skids on speculations of UK fund shedding stake in company

The market is abuzz with talk that a UK-based fund is offloading its holding in Bajaj Auto. Several brokers have received mandates from this fund, which is said to have put its entire holding on the block, said institutional salespeople privy to the matter. Brokers said the shares will be sold over a few days as liquidity in the stock is relatively lower compared to many other large-caps. This fund, according to brokers, is judging that two-wheeler sales may slow as the nation stares at the possibility of a drought this year. Investors worry that a drought which will squeeze income in rural India — a key market for two-wheeler companies — will impact their sales. Bajaj shares, which have fallen 5.5 per cent on Tuesday and Wednesday, rose 0.2 per cent to Rs 1,630.35 on Thursday.