Maruti Suzuki tumbles 4 pc in morning trade on bourses
Maruti Suzuki tumbles 4 % in morning trade on boursesbusiness Updated: Oct 10, 2011 12:38 IST
Defying the broader market trend, shares of Maruti Suzuki India tumbled by over 4 % in early trade on the bourses on Monday after the company cracked the whip on dissenting workers, sacking 15 and suspending 10 others.
Maruti Suzuki yesterday dismissed 10 workers, terminated five trainees and suspended 10 employees in connection "with the strike and violence at the Manesar factory premises".
Reacting to the development, shares of the company dropped by over 4.32 % on the Bombay Stock Exchange and more than 4.18 % on the National Stock Exchange to early lows of Rs 1,065 and Rs 1,066.60, respectively.
The stock, however, later recovered some of the lost ground and was trading at Rs 1,082.30 on the BSE, down 2.77 %, and at Rs 1,083.75 on the NSE, down 2.65 %, at 1045 hours.
The downtrend in the counter assumes significance as the broader market was in positive terrain, with the 30-share Sensex trading at 16,342.91 points, up 110.37 points, and the wide-based Nifty 37.70 points higher at 4,925.75.
In a statement, the company said the strike by the workers and the violence thereafter violated the agreement signed by the workers with the company management on October 1 in the presence of Haryana government officials.
MSI said it continues to be concerned about the safety of people as well as the plant and machinery and today the company "rescued" another 100 workers being "held under duress" by the striking workers in the factory.
Workers at the Manesar plant resorted to a stay-in strike on Friday afternoon, affecting production. The total number of workers who participated in the stay-in strike inside the Manesar plant was around 2,000. This included all categories of workers, including regular and contract employees, apprentices and trainees.