Maruti Suzuki Gains 3% on Strong July Sales

Maruti Suzuki shares gained as much as 3 per cent to intraday high of Rs 4,438 on Monday after the carmaker reported strong sales for the month of July.

 Maruti Suzuki, India's largest car maker, reported a 20.1 per cent annual growth in its July sales at 1,21,712 units, supported by strong domestic sales.

 Domestic brokerages Angel Broking and Nirmal Bang Securities in a note to clients today said that Maruti's July sales were better than their expectations.

 Maruti Suzuki's domestic sales increased 22.5 per cent in July, while its exports remained flat at 11,307 units.

 For the fiscal till July 31, 2016, Maruti's total sales stands at 4.63 lakh units, which is 21 per cent higher than the 4.01 lakh units sales reported in the game period last fiscal.

 Maruti shares have witnessed huge run-up in last three months on the back of its improving sales. Its shares have rallied around 18 per cent in last three months against 3 per cent gain in the broader Nifty.

 Maruti Suzuki had also reported strong earnings growth for the June quarter. Its net profit increased 57 per cent annually to Rs 1,193 crore on the back of strong sales, lower cost and favourable forex rates. Analysts believe Maruti is likely to continue to report strong numbers for the quarters ahead.

 Maruti Suzuki shares closed 2.29 per cent higher at Rs 4,429.60 apiece, outperforming the broader Nifty, which ended 0.12 per cent higher.