CLSA upgrade lifts Maruti Udyog

DALAL STREET SPIKES

Maruti Udyog gained 4.03 per cent on Wednesday on sustained buying with foreign broking firm CLSA upgrading the company's earnings for the current fiscal.

According to market sources, CLSA has reportedly upgraded the price target for Maruti, resulting in renewed buying at the counter. The stock, in intra-day trades, touched a high of Rs 568.95, before closing at Rs 562.35, with volumes accounting for more than 18.4 lakh shares.

Analysts said the entire automobile sector is witnessing good buying in anticipation of good results for the current quarter and the full year ended March 31, 2004.

Backed by strong demand amid rising aspirations of buyers and cheap finance options what with low interest rates, analysts expect the automobile industry to register good gains in terms of volumes. The passenger car industry as a whole registered a 36 per cent year-on-year growth in sales in financial year 2004.

However, a hike in steel prices remains a major concern as it would have an adverse impact on the margins, analysts added.