Maruti Suzuki posts best day in four years, investors richer by Rs 29,200 crore

Maruti Suzuki shares: Shareholders of Maruti Suzuki, India's largest car maker, saw their wealth rise by Rs 29,200 crore on Tuesday as the company's stock surged by an impressive 7.72 per cent at its highest level of the day, marking its best single-day performance in over four years, according to stock exchange data. The last time Maruti Suzuki shares rose by more than 7.72 per cent was on March 25, 2020, when the stock jumped 12.23 per cent just days after markets plummeted due to the COVID-19 lockdown was implemented in the country.

Maruti Suzuki's market capitalisation soared to Rs 4.07 lakh crore at the day's peak, up from its previous closing market cap of Rs 3.78 lakh crore.

The substantial price increase followed reports indicating that the Uttar Pradesh government had waived the hybrid vehicle registration tax.

The government of Uttar Pradesh announced a full waiver of registration tax on strong hybrid cars, potentially saving customers up to Rs 3.50 lakh on their vehicle purchase, according to media reports.

Maruti Suzuki is set to benefit significantly from this waiver, with three hybrid models—Grand Vitara, Invicto, and Ciaz (Semi-Hybrid)—already available in the market. The move is expected to boost hybrid car sales in India's largest auto market.

Additionally, expectations of robust quarterly earnings from the upcoming reporting season further propelled the stock price. Analysts at ICICI Securities forecast a 25 per cent growth in EBITDA, or operating profit, for auto and auto ancillary companies.

Maruti Suzuki shares also experienced a spike in trading volumes, with multiple block deals occurring on stock exchanges in early trading. On the National Stock Exchange, 20 lakh shares changed hands with a deliverable quantity of 30 per cent.

On the BSE, 1.08 lakh shares were traded, compared to an average of 22,000 shares traded daily over the past two weeks.

Maruti Suzuki shares ended the day 6.42 per cent higher at Rs 12,798.60, emerging as the top gainer on both the Nifty 50 and Sensex indices.