Maruti in the fast lane

Nothing fundamentally has changed in Maruti; it remains same as what it was yesterday and day before yesterday. Yet, today, it is the top gainer on the BSE, showing over 2 times surge in volumes and price, intra day, rise almost 3% to Rs.6881.90. It recently hit a new high at 6969.60.

The reason for this surge on the counter is foreign brokerage house, CLSA. It has been tracking the stock for some years now and it has always been a stoic “BUY” on the stock. Yesterday, it put out a report, increasing the price target from Rs.7600 to Rs.8100 and that is the sole reason for the stock taking ‘top gainer’ position.

After Maruti had announced its Q4FY17 results in April, CLSA had increased the price target from Rs.6650 to Rs.7600 and now the same has been hiked further. Maybe the FII knows more about the company’s sales numbers for May than what we all know and that is leading to this bullish stance on the counter.