Mumbai: After rising by almost two percent in early trade, shares of Maruti Suzuki India Monday settled in the negative terrain on bourses and lost over Rs 124 crore in its market capitalisation.
In its first trade after the 33-day long standoff between the management and workers of its Manesar plant ended early on Saturday, shares of Maruti surged by nearly 2 percent in early trade Monday, defying the weak broader market trend.
Shares of Maruti Suzuki settled with losses of 0.39 percent on the Bombay Stock Exchange, eroding the market value of the company by as much as Rs 124 crore to Rs 31,119 crore from Rs 31,243 crore on September 30.
On the National Stock Exchange the scrip ended the day at Rs 1,078.55, down 0.41 percent.
"From Maruti, there is re no clear indication as to what the company is going to do to control such stand-offs with workers. Secondly, investors are afraid that Maruti may shift all its operations to Gujarat and if so then it will involve huge amount of investment by the company," Wellindia Group Senior Equity Analyst Vivek Negi said.
Besides, the stock later in the day succumbed to the bearish sentiment in the broader market. At the end of Monday's trading session, the 30-share Sensex closed at 16,151.45 points, down 302.31 points.
Wide-based Nifty ended lower by 93.75 points at 4,849.50.
As per the agreement between Maruti and union, workers agreed to sign the contentious good conduct bond laid down by the management, while the company agreed to take back 18 trainees who were suspended conditionally.
The talks were brokered by the Haryana government. State Minister for Labour and Employment Shiv Charan Lal Sharma, Deputy Labour Commissioner J P Mann, Assistant Labour Commissioner Nitin Yadav and Gurgaon District Commissioner P C Meena were involved in bringing the two sides to an agreement.
First Published: Monday, October 3, 2011, 17:56