Maruti Suzuki shares snap 6-day gains as HSBC flags a near-term risk, fall 3%; auto index down 1%

Maruti Suzuki shares snap 6-day gains as HSBC flags a near-term risk, fall 3%; auto index down 1%

• Maruti Suzuki shares fell 2.8% after HSBC flagged near-term commodity risks
• HSBC raised Maruti Suzuki's target to Rs 18,500, keeping a Buy rating.
• Tata Motors PV shares dropped 1.5% as CLSA cut CY26 earnings estimate by 31%

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Shares of Maruti Suzuki India Ltd fell 3% on January 7, thus snapping their six-day gaining streak as investment bank HSBC said commodities could pose near-term risk for the stock.

HSBC said if the company's earnings before interest and tax margins are below the mark of 10% that could disappoint the market.

"Market share for MSIL has normalised back to 40%, though overall demand outlook remains buoyant," said HSBC in a note.

At 3:17 pm on January 7, Maruti Suzuki shares were trading 2.8% lower at Rs 16,792 apiece.

"With all stars aligned, 3Q and 4Q margins are critical for stock. Print below 10% EBIT could be disappointing for market. Commodities a near-term risk," added HSBC.

However, HSBC gave a 'Buy' rating for Maruti Suzuki and raised target price of Rs 18.500.

Maruti Suzuki’s total direct domestic sales in December 25 surged by 36% YoY and 5% MoM.

On January 7, Maruti Suzuki shares closed 2.8% lower at Rs 16,806. Meanwhile, Nifty Auto index closed 0.8% lower, its first red day after rising for six consecutive sessions.

Maruti Suzuki and Tata Motors PV led the losses on the Nifty Auto index.

Tata Motors PV fell for second day even after CLSA maintained 'Outperform' on the stock with price target of Rs 450.

Shares of Tata Motors PV are down 15% since listing a quarter ago, due to subdued Q2 results and weak Q3 outlook of subsidiary JLR, the global brokerage said.

"Ransomware attack on JLR also hampered production and logistics. However, JLR production due to normalise from Q4FY26, and outlook for Indian PVs better after GST rate cut," the brokerage said.

However, CLSA has cut Tata Motors PV's CY26 earnings per share estimate by 31%.

On January 7, Tata Motors PV shares closed 1.5% lower at Rs 363 apiece.