Maruti skids on Suzuki's diesel engines unit plan

DALAL STREET SPIKES

The stock price of automobile major Maruti Udyog crashed over six per cent on Tuesday on aggressive selling by foreign as well as domestic funds.

The stock, in Tuesday's trading, was the biggest loser in the 30-share Sensex basket, following the announcement that Suzuki has decided to set up a diesel engine unit in India.

A fund manager with a domestic mutual fund said the Maruti stock took a beating on the news that Suzuki has to carry on the major expansion projects through a separate joint venture rather than through Maruti Udyog.

The stock closed at Rs 354.65, down 6.34 per cent, on the back of a volume of more than 66.1 lakh shares on the BSE. Over 1.3 crore shares were traded on the National Stock Exchange.

The stock, in two trading sessions, has now lost nearly 10 per cent. The increased selling was also after a leading foreign broking firm downgraded the stock last week, market sources said.