Govt-Suzuki row end drives up Maruti

DALAL STREET SPIKES

Car major Maruti Udyog witnessed huge buying interest on Wednesday following reports that the Indian government has resolved a controversy over Suzuki Motor Corporation's plans for a second car factory in the country.

The stock was up 2.68 per cent to Rs 369.35. The counter was among the most active, recording a volume of more than 77.87 lakh shares on the Bombay Stock Exchange (BSE).

The government had put pressure on the Japanese car major over Suzuki's decision to set up a second car unit in India outside the Maruti fold. The stock reacted in the second half of the trading today to touch an intra-day high of Rs 373.20, before languishing in the red in morning trades.

The stock was down more than one per cent to a low of Rs 352 in early trades. The buzz in the market is that the counter is also witnessing buy calls from few domestic broking firms arguing attractive valuation after the recent crash in the stock price.