Maruti Suzuki share price plunges below Rs 6,000 mark for first time in 2 years
Country's largest automaker, Maruti Suzuki saw a massive negative sentiment on Dalal Street today. The shares of Maruti Suzuki India Ltd (MSIL) slipped by over 5% to hit a 52-week low. The share has plunged below Rs 6,000 mark for first time in 2 years.
Country's largest automaker, Maruti Suzuki saw a massive negative sentiment on Dalal Street today. The shares of Maruti Suzuki India Ltd (MSIL) slipped by over 5% to hit a 52-week low. The share has plunged below Rs 6,000 mark for first time in 2 years, while it ended at Rs 6,033.15, witnessing a fall of 331 points or 5.21% on BSE on Monday. Experts are blaming production cuts done by the automobile company for 5th straight month for this fall. Maruti Suzuki informed BSE on Friday that it has cut vehicle production for the 5th consecutive month in June, amid probe by Competition Commission of India (CCI) on implementation of the company's discount control policy.
Automobile industry has delivered a highly muted volume performance in 1QFY20 with double-digit volume decline for majority of the segments. Moreover a weak demand, distraction during central election, negative sentiment in rural market led to lower quarterly retail sales. Maruti Suzuki share started off with a 1.2% down trade to Rs 6,287 as against the previous closing of Rs 6,364.75 on Friday. While the stock of the vehicle manufacturer further corrected 5.96% to an intraday low of Rs 5,985.55, reporting its new 52-week low on bourses. There has been a constant correction in the stock price of Maruti Suzuki for last two days.
Overall, Maruti Suzuki share price has witnessed a plunge of over 35% in one year, over 18% in 6 months and around 14% over the last month. The auto sector of India has going through a tough phase with muted sales for quite some time now. The slowdown in the segment has forced companies to reduce their production in order to run as per the present market demand.
The commission has said that dealers of the auto major in a particular region are not permitted to give extra discounts to their customers and if a dealer is found offering discounts more than the permitted level, a penalty is levied. Maruti on the matter said that it does not exercise control or supervision over the dealers, except to maintain a balance between satisfaction of consumers and uniformity in schemes. In the regulatory filing submitted to BSE on Friday, Maruti further stated that it will take appropriate action for this.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.