Maruti skids on closure call, bounces back

DALAL STREET SPIKES

Maruti Udyog bounced back from lower levels on bargain hunting. The stock was down in the morning trades following the announcement that the company is revising its production plans for March 2005 and will close its facilities for two days.

The stock was hammered in intra-day trades at Rs 423.55 before bouncing back to end 2.70 per cent higher to close at Rs 448.05. Dealing room sources said, there was panic selling in the morning trades following the company's announcement of closure of facilities for two days.

The stock in the morning trades was the third largest loser among the Sensex stocks before recovering to end higher. The counter witnessed hectic activity with over 14.8 lakh shares changing hands on BSE alone.

The company had planned substantially higher production for the month of March 2005, expecting a major growth in the passenger car market during the month. The growth, however, has not materialised to the extent anticipated.

However, the company still expect that its sales during March 2005 will be the highest monthly sales ever in the company's history.