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Maruti Suzuki worries fall in import from Japan, down 5% on BSE

PTI     March 15, 2011
Auto giant Maruti Suzuki plunged nearly 5 per cent in early trade on the Bombay Stock Exchange (BSE) on Tuesday, hit by fears of a drop in imports from Japan, which suffered a natural disaster last week.

Shares of the country's biggest car-maker Maruti Suzuki slipped 4.7 per cent to an early low of Rs 1,200.05 on the BSE. The stock was the worst hit among the 30-Sensex scrips.

"The stock is suffering due to the last week's earthquake and tsunami in Japan, which has triggered fears that the car maker's margins would suffer this year, which can also see a fall in imports," a market player said.

Selling pressure was also seen in the counters of other major auto companies, including Mahindra & Mahindra (M&M) and Tata Motors which are sensitive to interest rate fluctuations.

"The RBI will come up with its policy review on March 17, wherein the apex bank is expected to hike its key policy rates by 25 basis points, which is also leading to the weakness in the interest rate-sensitive auto and realty sectors," said an expert.

Mahindra & Mahindra fell 4.08 per cent, while Tata Motors declined 3.44 per cent, Bajaj Auto 2.86 per cent and Hero Honda 2.68 per cent.

Further, the realty sector also took a hit, with realty major DLF shedding 3.85 per cent, DB Realty 3.12 per cent and Unitech 2.89 per cent.

Meanwhile, the BSE benchmark Sensex fell 253.97 points to 18,185.51 at 11.17 am on Tuesday.

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