On Friday, the prices of Maruti Suzuki share surged 10 per cent, The biggest rally in seven years which amid short-covering in beaten-down counter ahead of the GST council meeting, which is to take up a proposal for tax cuts. Also, Finance Minister Nirmala Sitharaman has announced major corporate tax cuts, which are seen to be helping all domestic and new manufacturing companies.
Maruti shares gained Rs 596.60 to trade at Rs 6,534.90 at 12.05 hours (IST). The stock had clocked the last biggest rise of 11 per cent on January 17, 2012.
The Chairman of Maruti Suzuki, RC Bhargava “The government has taken a major step that suddenly focuses on the importance of manufacturing and makes manufacturing a very attractive avenue for investment. Ultimately, what you want is a lot more investment and this is what the government has said about taxation on new companies. I think it is a very innovative and extremely important step.”
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