Maruti shares hit 6-month-low, pull back on recall

Shares in Maruti Suzuki pulled back after sliding to a six-month-low early on Wednesday, a day after India's top carmaker said it was recalling 100,000 of its A-Star hatchbacks sold overseas and in India.                                           

Maruti, in which Japan's Suzuki Motor Corp has 54.2 percent stake, said on Tuesday that a faulty gasket leading to a potential fuel leakage problem had been identified and the company had fixed about half of the cars.                                           

"As expected initially the stock opened lower, as any recall involves costs," said Arun Kejriwal, director at research firm KRIS. "But, I think, people are awaiting more details on the costs and the full impact of it before they take a definitive view. It seems to be a one-off event," he said.                                           

Maruti shares initially fell about 2 percent to 1,310 rupees, their lowest since Aug. 19 last year, but quickly pulled into positive territory and then eased again.

At 9:33 a.m. (0403 GMT), the shares were up 0.05 percent at 1,336.90 rupees. The stock has fallen 14.3 percent this year, lagging the main index which has lost 6.7 percent.