Maruti Suzuki gains as Yen depreciates against US dollar

MUMBAI: Shares of Maruti Suzuki spiked up in the last fifteen minutes of trade as the US dollar appreciated against the Japanese Yen. The US dollar was up over 0.6 per cent to 100 yen after the Japan's finance minister said currency intervention was still a policy option.

According to analyst tracking the stock, the weakening of yen is one of the biggest positives for Maruti and that is going to continue the way the Japanese monetary policy is shaping up. So Maruti looks extremely good from the point of view of yen depreciation.

Maruti Suzuki exposure to Yen is nearly 20-25 per cent of revenues. Around 1 per cent weakness in Yen helps Maruti Suzuki’s earnings by 3-4 per cent.

The stock ended at Rs 1,621.65, up 2.67 per cent, on the BSE. It touched a high of Rs 1,623.85 and a low of Rs 1,590 in trade today.