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Maruti Suzuki rebounds after yesterday's fall

The stock has rallied 8.4% to Rs 1,695, erasing entire yesterday's 8.1% fall on the Bombay Stock Exchange.

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SI Reporter Mumbai
Last Updated : Jan 29 2014 | 9:36 AM IST
Maruti Suzuki India has surged 8.4% to Rs 1,695, erasing entire yesterday’s fall, on the Bombay Stock Exchange (BSE).

The stock opened at Rs 1,606 and has seen a combined 1.8 million shares changed hands on the counter till 0925 hours on the BSE and NSE.

On Tuesday, shares of automobiles major had tanked 8.1% after Maruti Suzuki India announced its proposed passenger car facility in Gujarat would not be operated by it but its parent, Japan’s Suzuki Motor Corporation (SMC).

A new firm, Suzuki Motor Gujarat Pvt Ltd, to be registered by April, will exclusively contract-manufacture and sell vehicles to Maruti Suzuki India, which will only market those vehicles in India and abroad.

According to Business Standard reports, many analysts, raised questions on “corporate governance” issues and said minority shareholders should challenge the deal, as their interests would be adversely affected.

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First Published: Jan 29 2014 | 9:34 AM IST

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