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Maruti shares hit 6 month low, pull back, on recall

Maruti shares hit 6 month low, pull back, on recall
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First Published: Wed, Feb 24 2010. 09 17 AM IST
Updated: Wed, Feb 24 2010. 09 17 AM IST
Mumbai: Shares in Maruti Suzuki pulled back after sliding to a six-month-low early on Wednesday, a day after India’s top carmaker said it was recalling 100,000 of its A-Star hatchbacks sold overseas and in India.
Maruti, in which Japan’s Suzuki Motor Corp has 54.2% stake, said on Tuesday that a faulty gasket leading to a potential fuel leakage problem had been identified and the company had fixed about half of the cars.
“As expected initially the stock opened lower, as any recall involves costs,” said Arun Kejriwal, director at research firm KRIS.
“But, I think, people are awaiting more details on the costs and the full impact of it before they take a definitive view. It seems to be a one-off event,” he said.
Maruti shares initially fell about 2% to Rs1,310, their lowest since 19 August last year, but quickly pulled into positive territory and then eased again. At 9.33 am the shares were up 0.05% at Rs1,336.90.
The stock has fallen 14.3% this year, lagging the main index which has lost 6.7%.
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First Published: Wed, Feb 24 2010. 09 17 AM IST