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Maruti Suzuki hits 14-month low; exit Rs 1 lakh crore market-cap club

Shares of Maruti Suzuki India have fallen to 14-month lows of Rs 3,202 after declining 6%, bringing down its market capitalisation (market-cap) below Rs 1 lakh crore on the Bombay Stock Exchange (BSE).

At 03:15 PM, the stock was trading at Rs 3,221, its lowest level since October 2014, with a market-cap of Rs 97,904 crore.

The Finance Minister Arun Jaitley announced a 1-4% infrastructure cess on cars across categories, as he presented the Budget for 2016-17 on Monday.

Finance Minister Arun Jaitley in his speech on Union Budget 2016-17 in Lok Sabha today, 29 February 2016, proposed to levy an infrastructure cess of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs.

A cess of 1% will be levied on petrol/LPG/CNG driven motor vehicles of length not exceeding 4 metres and engine capacity not exceeding 1200cc. A cess of 2.5% will be levied on diesel driven motor vehicles of length not exceeding 4 metres and engine capacity not exceeding 1500cc. A cess of 4% will be levied on other higher engine capacity and SUVs and bigger sedans.

Maruti Suzuki India’s market value has declined by Rs 25,872 crore to Rs 97,904 crore from Rs 123,776 crore as on January 31, 2016.

Thus far in 2016, the stock tanked 30% from Rs 4,616 as compared to 12% decline in the S&P BSE Sensex.