M&M falls on downgrade

Shares of M&M closed at Rs 829, down 3.38%

Shares of Mahindra & Mahindra (M&M) on Tuesday fell over three per cent after Credit Suisse downgraded the auto maker to ‘neutral’ from 'outperform', and recommended investors to switch to Maruti Suzuki. Shares of M&M closed at Rs 829, down 3.38 per cent, while Maruti Suzuki gained two per cent to Rs 1,365.

Credit Suisse said M&M 's product cycle in utility vehicles would peak, while also pointing to its lower-than-expected tractor sales. By contrast, the investment bank says Maruti's Ertiga utility vehicle is seeing “phenomenal success”. Maruti on Tuesday unveiled its new Alto 800 model.