By Hritam Mukherjee (Reuters) -Indian shares dropped on Thursday as motorcycle maker Bajaj Auto's warning of weak festival season sales rippled through the industry, adding to the pressure of high stock valuations and the exodus of foreign funds.

Bajaj Auto share price has seen a sharp fall recently as the auto stock plunged over 13% in one month. However, Bajaj Auto shares have rallied over 53% year-to-date (YTD) and has given multibagger returns of over 101% in the past one year.

With the valuation falling below ₹3 lakh crore, Bajaj Auto also lost the tag of the second most-valued group firm to Bajaj Finserv. As of Thursday’s close, Bajaj Finserv commands a market capitalisation of ₹2.

Bajaj Auto shares dropped over 10% in early trade, following the company's Q2FY25 financial results.

Bajaj Auto Q2 Results Live : Bajaj Auto declared their Q2 results on 16 Oct, 2024, revealing a mixed financial performance. The company's topline increased by 22.23% year-over-year, yet profit experienced a significant decrease of 31.42% during the same period.

India's Bajaj Auto's shares tumbled 10% on Thursday after the motorcycle maker said it anticipated weak festive season sales, a warning that slammed other automakers and also weighed on the broader market.

The shares of Bajaj Auto plunged down almost 12 per cent after the company posted their Q2 earnings results. which showed consolidated net profit after tax (PAT) for the second quarter of the fiscal year 2024-2025 (Q2FY25) decreased 31.

Bajaj Auto's shares tumbled 12% on Thursday after the Indian motorcycle maker said it anticipated weak festive season sales, a warning that slammed other automakers and also pulled down the broader market.