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Mumbai May 18 The stock price of Bajaj Auto fell by Rs 213.50 or 8.54 per cent to close at Rs 2,286.80 on the BSE on Friday.

The company's stock plunged for the second consecutive day as analysts continued to express concern over the valuation of the insurance business of the company.

Also, as a result of the demerger of Bajaj Auto, there will be equity dilution when the two new demerged entities get listed, said analysts.

"The equity dilution will have an impact on the earnings of the company," said Ms Vaishali Jajoo, auto analyst, Angel Broking.

The stock opened at Rs 2,302.95, touched an intra-day low at Rs 2,179 before closing at Rs 2,286.80 on the BSE.

Credit Suisse Group and UBS AG have downgraded the stock.

Analysts said the stock will continue to witness volatility in the near short term. "The stability in the share will depend on the volumes sold by the auto maker and the success of the launch of the new two-wheeler to be launched in the current fiscal year," said Ms Jajoo.

More Stories on : Stocks | Restructuring | Two/Three Wheelers | Bajaj Auto Ltd

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