Bajaj Auto is a stock to watch today as it prepares to account for a significant one-time tax provision of ₹211 crore for the second quarter. This provision is a direct result of the recent withdrawal of indexation benefits on long-term capital gains from debt mutual funds, as stated in the Budget 2024. The company’s decision to make this provision aligns with the new tax regulations and will be reflected in its profit after tax for the July-September quarter of 2024.
Investors are likely to see high trading volumes for Bajaj Auto shares today, given the implications of this tax change on the company’s financials. Despite a slight decline of 1.11% in its share price to ₹9,770.70, market participants are closely monitoring how this provision will affect the company’s cash flow and overall financial health. The company clarified that while this provision will impact reported profits, it will not affect operational performance, as actual tax payments will occur upon the redemption of mutual funds.
As the market reacts to this news, Bajaj Auto’s stock is expected to remain in focus, potentially leading to increased trading activity throughout the day.
