Shares of Maruti Suzuki India Ltd were the top gainers on Sensex and Nifty on Tuesday after the Uttar Pradesh government exempted strong hybrid electric cars (HEVs) and plug-in hybrid electric vehicles (PHEVs) from registration charges with immediate effect. That amounts to nearly 10% discount on the total cost of cars.
The move is likely to affect a rise in sales of Maruti Suzuki's Grand Vitara SUV and Invicto MPV, both featuring strong hybrid technology.
Maruti Suzuki stock rose 6.82% intraday to Rs 12,846.95 against the previous close of Rs 12,026 on BSE. Total 0.71 lakh shares of the firm changed hands amounting to a turnover of Rs 89.13 crore. Market cap of Maruti Suzuki rose to Rs 4.02 lakh crore on BSE.
On Nifty too, the stock gained 6.86% to Rs 12,848. Market cap of the auto firm rose to Rs 4.02 lakh crore on NSE.
In a year, the stock rose 30% and gained 51.20% in two years.
Maruti Suzuki shares have a one-year beta of 0.5, indicating low volatility during the period. In terms of technicals, the relative strength index (RSI) of Maruti Suzuki stands at 38.3, signaling it's trading neither in the overbought nor in the oversold zone.
Maruti Suzuki shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day 150 day and 200 day moving averages.
Typically, the UP government charges 8 per cent road tax on vehicles that cost less than Rs 10 lakh and 10 percent road tax on vehicles that cost above Rs 10 lakh (ex-showroom).