​Shares of Maruti Suzuki India slumped in today's trade. Here's why

Maruti Suzuki India Ltd., the nation's top car maker, slumped in trade on Tuesday after its volume sales for the month of August fell below street's expectations.

Maruti said its domestic sales in August rose 8.6 percent to 1.067 lakh units while exports slumped 11.1 percent to 11,083 units last month. Total sales in August inched up 6.4 percent to 1.18 lakh units. Maruti had launched its S-Cross vehicle last month and forecasts were of a higher sale number.

As a consequence, Maruti fell 31.50 rupees, or 0.8 percent, to 4,136 rupees on the National Stock Exchange with 2.04 lakh shares traded compared with a 5-day average of 5.98 lakh shares.

Maruti's market capitalisation gained 43 percent in the past one year to 1.25 lakh crore rupees and the stock is trading at 5 times its book value of 824 rupees.

Image credit: Indiatimes