Mahindra & Mahindra shares tank 7% after Rs 2 lakh price cut on XUV 700

M&M shares: The shares of Mahindra & Mahindra fell Rs 6.94 per cent today after the company on Wednesday announced its decision to cut the price of XUV700 by Rs 2 lakh. Even as the company called it a move to celebrate the third anniversary of its flagship SUV, experts believe that it's an attempt to clear unsold inventories.

The price change varies from Rs 1.45 lakh to Rs 2.20 lakh depending on the seating configuration and the powertrain a consumer opts for. The XUV700 is offered in two-engine options and six and seven-seater configurations in the AX7 variant.

This is the sharpest intraday decline for Mahindra shares in nearly a year, topping the list of Nifty losers. The Nifty has achieved record highs in 17 out of the 27 sessions since early June, marking an impressive 8.5 per cent rally driven by the continuity in policy post-national elections and optimistic economic growth prospects.

In contrast, Maruti Suzuki surged approximately 3 per cent, leading gains on the Nifty for the second consecutive day. This increase came after reports that Uttar Pradesh (UP) had waived registration fees on hybrid vehicles.