Maruti hits record new high

Maruti Suzuki hit a record high today at Rs.4762.90 with some 1.7 lakh shares being traded today morning.

The stock hit the roof, happy with Raghuram Rajan’s decision to reduce rates by a whopping half percentage. Banks are expected to start transmitting this rate cut soon and the hope is that as interest costs comes down, EMIs will come down and thus demand for cars will go up.

This apart, foreign brokerage CLSA put out a report saying that over the next few months, as rates come down further, Maruti will be a big beneficiary. It stated that with 90% of finance-driven demand is for commercial vehicles, 60% for passenger cars and about 30% for two-wheelers. Thus it expects Ashok Leyland and Maruti Suzuki to benefit more.

The company is expected to announce its sales numbers for September tomorrow.