Maruti Suzuki Shares Gain 4% Hits 52-Week High: Here’s Why

Benchmark indices in the afternoon session on the first trading day of the week traded with gains, with Nifty up 0.25% or 45 points at 18300 points. Meanwhile, broader markets underperformed with Nifty Mid cap 100 up by just 0.13 percent at around 12:42 pm.

Among Nifty sectoral indices, there has been a mixed trend with Auto index gaining close to 2 percent, while metal, pharma, private bank and financial services indices trading in the red. Within the auto pack, Maruti Suzuki shares in intraday trade hit a fresh 52-week high price of Rs. 8368.9 per share, gaining 4 percent. This is after the auto major hike process across models due to a surge in input costs.

The company in an exchange filing said,"In continuation to our earlier communication dated December 2, 2021, the company announced price change across models owing to increase in various input costs. The weighted average price increase in ex-showroom prices (Delhi) across models is 1.7 percent. The new prices are effective from January 15, 2022".

Furthermore, the counter is gaining as the recently launched NFOs for Auto ETFs by ICICI Prudential as well as Nippon India AMC will begin deploying funds in the next few days and with Maruti Suzuki carrying 19.5% weight in the Nifty Auto index is likely to rake in the most amount of the passive funds.

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