Maruti Suzuki Set to Become Next Nifty Stock at 10,000 Rupees
Maruti Suzuki will be the third stock in Nifty 50 to cross Rs 10,000, thanks to this year’s record-setting rally.
(Bloomberg) -- Maruti Suzuki India Ltd. is set to become the third stock in an equity index of the nation’s top 50 companies to cross the 10,000-rupee mark, thanks to this year’s record-setting rally.
Shares of the carmaker, which accounts for about half of all cars sold in India, rose as high as 10,000 rupees for the first time on Wednesday. The stock has surged 13 percent in December, poised for its best month since July last year.
Eicher Motors Ltd., owner of the Royal Enfield motorcycle brand, and Bosch Ltd., a maker of spark plugs and fuel injection pumps, are the other Nifty members with a five-digit price tag on their shares. Eicher has surged 38 percent this year to 30,174.6 rupees, set for its ninth straight year of gain. Bosch traded at 19,855.15 rupees at the close in Mumbai.
Maruti Suzuki’s market value has surged 82 percent in 2017 to about $46 billion, bringing the carmaker neck-to-neck with consumer products giant Hindustan Unilever Ltd., the fifth most-valued stock on the Nifty.
“The rise in fortunes of Maruti is a classic example of the consumption boom in India,” Gautam Duggad and Jinesh Gandhi, analysts at Motilal Oswal Securities Ltd., wrote in a note on Wednesday. “There is not much competition in sight.”
To contact the reporter on this story: Ravil Shirodkar in Mumbai at rshirodkar@bloomberg.net.
To contact the editors responsible for this story: Christopher Anstey at canstey@bloomberg.net, Ravil Shirodkar, Sam Nagarajan
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