Maruti Suzuki skids on renewed labour unrest

Defying the broader market trend, shares of Maruti Suzuki India tumbled by over 4 per cent in early trade on the bourses on Monday after the company cracked the whip on dissenting workers, sacking 15 and suspending 10 others.

Maruti Suzuki on Sunday dismissed 10 workers, terminated five trainees and suspended 10 employees in connection "with the strike and violence at the Manesar factory premises".

Reacting to the development, shares of the company dropped by over 4.32 per cent on the Bombay Stock Exchange and more than 4.18 per cent on the National Stock Exchange to early lows of Rs 1,065 and Rs 1,066.60, respectively.

The stock, however, later recovered some of the lost ground and was trading at Rs 1,082.30 on the BSE, down 2.77 per cent, and at Rs 1,083.75 on the NSE, down 2.65 per cent, at 1045 hours.

The downtrend in the counter assumes significance as the broader market was in positive terrain, with the 30-share Sensex trading at 16,342.91 points, up 110.37 points, and the wide-based Nifty 37.70 points higher at 4,925.75.

In a statement, the company said the strike by the workers and the violence thereafter violated the agreement signed by the workers with the company management on October 1 in the presence of Haryana government officials.