Maruti Suzuki is zooming through Dalal Street. Know why

Shares of Maruti Suzuki Ltd. rose 2 percent after Global brokerage Credit Suisse raised its price target on the car maker to 5,100 rupees from 4,370 rupees, citing a rising in volumes should continue fuelling upgrades.

Maruti rose 83 rupees to a new high of 4,134 rupees on the National Stock Exchange. It was on the top gainers list both on the Sensex and the Nifty as also in the futures and options space.

Credit Suisse hopes the expected rise in government's staff wages following the 7th Pay Commission could be a big trigger for the stock that has already gained 65 percent in one year. CS, as the brokerage is known as, raised its estimates for Maruti's volume growth to 23 percent from 17 percent for the year to March 2017.

CS says a rise in the foreign holding limit at Maruti could be another catalyst which may get Maruti included in MSCI. CS is extremely bullish on Maruti with its FY17 projections being 20 percent higher than consensus.

(Image credit: Indiatimes)