M&M Shares Plunge 7%, Market Value Drops Rs 24,087 Cr

New Delhi, Jul 10 (PTI) Shares of Mahindra & Mahindra dropped nearly 7 per cent on Wednesday after the company cut prices of its SUV model to boost demand.

The stock tanked 6.62 per cent to settle at Rs 2,732.10 on the BSE. During the day, it tumbled 7.79 per cent to Rs 2,697.80.

At the NSE, it declined 6.68 per cent to Rs 2,729.90.

The company's market valuation eroded by Rs 24,087.15 crore to Rs 3,39,744.51 crore.

It was the biggest laggard among the BSE Sensex and NSE Nifty firms.

Shares of Tata Motors also declined 0.92 per cent to Rs 1,005.45 on the BSE after the firm slashed prices of its SUV models.

Mahindra & Mahindra said its XUV700's fully-loaded AX7 range now starts at Rs 19.49 lakh, a price cut of over Rs 2 lakh.

Tata Motors has revised the starting prices of its flagship SUVs, the Harrier (Rs 14.99 lakh) and the Safari (Rs 15.49 lakh) and extended benefits of up to Rs 1.4 lakh on other popular SUV variants.

"With regards to electric vehicles, never before seen benefits on the Nexon.ev (up to Rs 1.3 lakh), have made it the most accessible it has ever been," Tata Passenger Electric Mobility Chief Commercial Officer Vivek Srivatsa said in a statement.

The 30-share BSE benchmark closed lower by 426.87 points or 0.53 per cent at 79,924.77. The NSE Nifty dropped 108.75 points or 0.45 per cent to settle at 24,324.45.