Maruti Suzuki falls on muted sales outlook

Reuters Market Eye - Shares in Maruti Suzuki fail to hold on to earlier gains and are down 2.2 percent after analysts raised concerns about the carmaker's cautious outlook on car sales.

Although investors initially reacted positively to April-June results that showed a 49 percent rise in net profit, analysts warned Maruti Suzuki's cautious outlook on car demand could weigh on shares in the near-term.

A rise in discounts to push sales amid softening demand in diesel vehicles is also seen weighing on Maruti Suzuki shares, analysts add.

Company expects sales volumes to grow up to 5 percent in the current financial for domestic market.

 

(Reportibng by Abhishek Vishnoi)