Shares in Maruti Suzuki rose as much as 4.5 per cent tracking the continued weakness in the Japanese yen, which slid to a 3-1/2 year low against the dollar on Friday. The yen suffered its biggest one-day tumble since late 2008 on Thursday, on the back of the Bank of Japan's radical campaign to attack deflation.
A weaker yen would improve Maruti's margins by reducing the costs of importing auto parts from Japan.
Maruti Suzuki shares were up 4.3 percent as of 10:49 a.m.
Meanwhile, global investment bank CLSA maintained a "buy" rating on Maruti shares with a target of Rs 1,850. Demand side negatives are priced in the stock, CLSA said, adding that valuations overlook positives such as stabilizing market share.
CLSA said the demand environment is likely to improve by fiscal year 2014-15.
(With inputs from Reuters)