The largest producer of the motorcycles across the world for the past nine years has surely been going through one of the best growth phases in the history of the company but its stock took a beating after the news of Honda divesting a 6% stake in the company hit the bourses.

It is to be mentioned here that the Japanese auto major holds a 6% stake in the two-wheeler major while the majority stake is being held by the Munjals.

As soon as the news of Honda divesting its stake hit the markets, the stock of the company touched an intraday high of Rs 1,960 and an intraday low of Rs 1,833.60. and closed at 6.35% down.

The market leader in the Indian two-wheeler market has surely been able to get its strategy right in the terms of networks expansion in hinterlands and banking on high mileage products like Splendor and Passion.

However, with Honda divesting a 6% stake in the company, analysts are considering this as a negative signal for the growth of the company and hence expect the stock to to see a bit of more downside in the coming times.