Shares of Maruti Suzuki India Ltd rose nearly 4 percent on June 30 after Jefferies upgraded the stock to "Buy" from its earlier rating and raised its target price to Rs 16,500 per share, citing improving demand prospects and easing cost pressures.

At 11.20 am, Maruti Suzuki shares were trading 3.9 percent higher at Rs 13,935, extending early morning gains, and emerging as the top gainer on the Nifty 50. The stock has gained over 12.6 percent over the past year, outperforming the Nifty 50, which has declined 6.4 percent during the same period. The company commands a market capitalisation of about Rs 4.4 lakh crore.

Jefferies raised its target price to Rs 16,500 per share, implying an upside of around 23 percent from the previous session's closing price. The brokerage said stronger passenger vehicle demand and lower crude oil prices have eased concerns around demand, while softer metal prices are expected to reduce margin risks for the country's largest carmaker.

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Reflecting the improved outlook, Jefferies raised its earnings per share (EPS) estimates for FY27 to FY29 by 2-4 percent. It also expects Maruti Suzuki to deliver a 16 percent compound annual growth rate (CAGR) in EPS over FY26-FY29.

Despite Maruti Suzuki's gains, the broader market traded lower. At 09:40 IST, the Sensex was down 177.71 points, or 0.23 percent, at 76,550.66, while the Nifty fell 66.30 points, or 0.28 percent, to 23,879.95. The Nifty Auto index was down 0.66 percent.

The broader market traded with a negative bias despite gains in select large-cap stocks. The Nifty IT index emerged as the biggest sectoral loser, falling more than 2 percent, while FMCG, metal, auto and banking stocks also traded in the red. On the other hand, consumer durables, realty and small-cap shares bucked the trend with modest gains, while the India VIX rose over 2 percent, indicating a pickup in market volatility.

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