Maruti Suzuki share price top Sensex loser, falls over 3% on chip shortage; may fall 7% more

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October 01, 2021 11:22 AM

Maruti Suzuki share price fell over 3 per cent to Rs 7,093.50 apiece on BSE, after the company said that it is expecting an adverse impact on production at its two plants in Haryana and parent Suzuki's Gujarat plant in October.

Maruti suzukiMaruti Suzuki was the top BSE loser today, along with Bajaj Finserv, Bajaj Finance, Asian Paints, Housing Development Finance Corporation (HDFC), and others.

Maruti Suzuki share price fell over 3 per cent to Rs 7,093.50 apiece on BSE, after the company said that it is expecting an adverse impact on production at its two plants in Haryana and parent Suzuki’s Gujarat plant in October on account of supply constraint of electronic components due to semiconductor shortage. Maruti Suzuki was the top BSE loser today, along with Bajaj Finserv, Bajaj Finance, Asian Paints, Housing Development Finance Corporation (HDFC), and others. The company in its official statement said that they’re expecting total vehicle production in October at two of its plants to be around 60% of normal levels.

“Maruti Suzuki has support at Rs 7,000 and resistance at Rs 7,250. Technically, all the indicators are in a bearish zone and the downside target of Maruti Suzuki is Rs 6,800 in the near term,” Ravi Singh, Vice President and Head of Research, Share India Securities, told Financial Express Online.

In trading volume terms, 13,000 shares have traded on BSE, while a total of 5.08 lakh units have exchanged hands on NSE, so far in the day. Analysts say that it was expected from the car company amidst a semiconductor shortage. “This adverse situation is likely to hamper supply as demand is still intact and expected to be higher in the coming few quarters. Still, I expect some recovery in auto stocks on higher demand,” Harsh Patidar, Analyst at CapitalVia Global Research, told Financial Express Online.

Maruti Suzuki shares touched a 52-week high of Rs 8,400 on 13 January 2021 and a 52-week low of Rs 6,301.20 on 24 February 2021. The stock is trading 14.65 per cent down from its 52-week high and over 15 per cent above its 52-week low. In comparison, BSE Sensex was down 252 points or 0.43 per cent at 58,874 levels.

(The stock recommendations in this story are by the respective research analysts and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

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