Shares of Maruti Suzuki India are doing rather well. Know why

Shares of Maruti Suzuki India Ltd. hit a fresh high on Monday after the nation's top car maker announced a 20 percent rise in monthly sales for July thanks to rising domestic demand.

Maruti said it sold 121,712 units in July compared with 101,380 units in the same month a year ago. Exports grew a meagre 0.2 percent while domestic sales jumped 22.5 percent on year to 110,405 units in the past month.

As a consequence, Maruti posted a record high of 4,431 rupees, up 96 rupees, or 2.2 percent on the NSE, where 2.31 lakh shares were traded.

Maruti's market capitalisation has jumped 71 percent in the past one year to 1.33 lakh crore rupees as middle-class Indians rode on to an auto boom in the entry level car segment. Maruti's break neck growth has made it more valuable that its parent Suzuki, listed on the Japanese market.

Image credit: Indiatimes