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Shares of Maruti Suzuki India today shot up by over 7% in an otherwise weak stock market, adding Rs 2,738 crore to the company's market value.
The scrip jumped as investors tracked weakness in the Japanese yen which would boost margins of Suzuki's Indian subsidiary by reducing the costs of imports.
The stock was the top gainer on both Sensex and Nifty.
After surging nearly 9% to Rs 1,424.50 intra-day trade on the BSE, the stock finally ended at Rs 1,405.95, up 7.23%.
At NSE, the scrip ended 7.18% higher at Rs 1,405.25.
The market capitalisation of Maruti Suzuki soared by Rs 2,738 crore to Rs 40,619 crore.
A weaker yen would improve Maruti's margins by reducing the costs of importing auto parts from Japan. At present, the average localisation of MSI cars is about 90%.
"MSIL, as a company, has large currency exposure of 28% of net sales. Margin improvement will likely be aided by operational levers of volume growth as new launches kick-in and on favourable currency," said a report by ICICI Securities.
In the broader market, however, the BSE 30-stock index Sensex ended at 18,450.23, down 59.47 points. PTI SUM SA
