Share of Maruti Suzuki gained 2% in early trade today after the car maker announced it would raise prices from January next year. Maruti Suzuki share gained 1.88% to Rs 7,852 against previous close of Rs 7,707 on BSE. The stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose to Rs 2.33 lakh crore.
The share has gained 11% in one year and risen 5% since the beginning of this year. In a month, the stock has gained 13.81%. Over the past year, cost of the company's vehicles has been impacted adversely due to increase in various input costs, said Maruti Suzuki.
"Hence, it has become imperative for the company to pass on some impact of the above additional cost to customers through a price rise in January 2021. This price increase shall vary for different models," it added.
At present, Maruti Suzuki sells a range of vehicles from entry-level small car Alto with price starting at Rs 2.95 lakh to multi-purpose vehicle XL6 priced up to Rs 11.52 lakh (ex-showroom Delhi).
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In November, the car maker posted a 2.4 per cent decline in total domestic passenger vehicle sales at 1,35,775 units as against 1,39,133 in the same month last year.
Meanwhile, Sensex traded 185 points lower at 45,921 and Nifty fell 59 points to 13,469 in early trade. On Wednesday, Sensex ended 494 points higher at 46,103 and Nifty closed 136 points higher at 13,529.