Maruti hits a new high, again

Maruti Suzuki had hit a new 52-week high yesterday at Rs.1796.45 and today too, it has hit a new high at Rs.1805 though it has currently come off this high and it ruling around Rs.1796.

The stock is hitting a high on the back of Japanese Yen hitting a five-year low against the US dollar. This was the reaction to the US Fed tapering. A falling yen is good news for Maruti as it imports raw materials from Suzuki, Japan and this could mean lower costs and this means better margins. The company also pays an annual royalty to Suzuki. Thus overall a falling yen, is good news for Maruti.