Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 150
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Deprecated (16384): The ArrayAccess methods will be removed in 4.0.0.Use getParam(), getData() and getQuery() instead. - /home/brlfuser/public_html/src/Controller/ArtileDetailController.php, line: 151
 You can disable deprecation warnings by setting `Error.errorLevel` to `E_ALL & ~E_USER_DEPRECATED` in your config/app.php. [CORE/src/Core/functions.php, line 311]
Warning (512): Unable to emit headers. Headers sent in file=/home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php line=853 [CORE/src/Http/ResponseEmitter.php, line 48]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 148]
Warning (2): Cannot modify header information - headers already sent by (output started at /home/brlfuser/public_html/vendor/cakephp/cakephp/src/Error/Debugger.php:853) [CORE/src/Http/ResponseEmitter.php, line 181]
LATEST NEWS UPDATES | Maruti Suzuki hit by protests in Manesar; production loss weighs

Maruti Suzuki hit by protests in Manesar; production loss weighs

Share this article Share this article
published Published on Nov 6, 2012   modified Modified on Nov 6, 2012
-The Economic Times

Shares of Maruti Suzuki India slipped over 2 per cent in trade on Tuesday after reports indicated that the workers at the Manesar plant are planning a hunger strike and other peaceful protests to force the company management to reinstate the 548 employees who were sacked after July's violence.

At 01:20 pm, Maruti Suzuki recovered marginally and was trading 1.8 per cent lower at Rs 1453.25. It has hit a low of Rs 1444.20 and a high of Rs 1474.80 in trade today. The stock has gained nearly 60 per cent so far in the year 2012.

"These workers have formed a new provisional working committee under the aegis of the now defunct Maruti Suzuki Workers' Union (MSWU) and the new functionaries have served a notice to the Haryana government for a hunger strike," ET reported.

Maruti has almost resumed normal production at the Manesar plant and is manufacturing around 1,600 cars per day. It is operating both the plants and full peak capacity is expected to be reached by the middle of this month.

A.K Prabhakar, Senior Vice President - Equity Research at Anand Rathi, is of the view that automaker is hit by Manesar protests and Suzuki closing down US operations, which have also impacted market sentiment.

"The stock has almost gained 40 per cent from June low and after such a rally profit booking is part of the market," he added. "Auto stocks as a whole are seeing profit booking ahead of US election. Maruti looks weak on charts and correction till Rs 1360 is healthy," added Prabhakar.

Japan's Suzuki Motor Corp said it will shutter its unprofitable automobile sales business in the United States and instead focus on its motorcycle business.

Angel Broking sees this as a negative development for Maruti Suzuki Ltd as the agitation by the workers would again disrupt the production at the plant. The production at the Manesar plant was returning back to normal levels post the strike and was expected to reach peak levels of 1800 cars/day by November 2012.

"We feel that the company management may not be comfortable with meeting the demand of the workers this time as the management was very clear that they would resume production at the plant only post a strict action against the workers involved in the July violence," Angel Broking said in a report.

The Mumbai-based brokerage firm maintains 'neutral' rating on the stock.

The Economic Times, 6 November, 2012, http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/maruti-suzuki-hit-by-protests-in-manesar-production-loss-weighs/articleshow/17112025.cms


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close