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.

The Nifty Auto index fell 3.5% while the benchmark Nifty ended 0.89% lower. All 15 stocks constituting the index closed lower on Thursday. Analysts said higher sales volumes typically mark the festival season for automobile manufacturers,

Bajaj Auto's weak Q2 results, and subdued festive demand outlook have led to a 3.5% drop in the Nifty Auto index. Major two-wheeler manufacturers, including Hero MotoCorp and TVS Motor, also experienced significant losses.

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.

The motorcycle maker Bajaj Auto's BAJA.NS shares dropped over 9 per cent on Thursday and looked set for their worst day since March 2020 after the company's weak outlook for overall motorcycle sales during the festive period.