Ashok Leyland (ALL) is moving from strength to strength as a normal monsoon could prove a boon to the auto industry in general.
The scrip of the Chennai-based buses and trucks maker edged up 3.63 percent to close the day on the BSE at Rs 122.60.
In the afternoon trades, the scrip was up 2.7 per cent to Rs 121.50. The scrip jumped as much as 51 per cent to a high of Rs 124.35 (which was a 52-week high) earlier. Total volumes of 2.35 lakh shares changed hands on the BSE counter.
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The stock has recovered twice after it fell below the Rs 115-level from the Rs 120-level over the past few sessions. The stock currently trades near its 52-week high. It has witnessed a sustained rally on the bourses over the past few months.
It surged 49.3 per cent from Rs 81.35 on November 15, 2002, to the current Rs 121.50.
Analysts said the recent firm trend in ALL is also part of the broad-based surge in auto shares in the last few trading sessions.
A host of auto scrips belonging to the two-wheeler, tractor and commercial vehicles sector have surged over the last few trading sessions following the arrival of the monsoon and on expectations that the monsoon this year will be normal.
Stocks like Hero Honda, Bajaj Auto, Telco, Eicher Motors, Punjab Tractors and Mahindra and Mahindra have witnessed a rally in the last few trading sessions.
Analysts also have a positive view on ALL due to its strong volumes growth in M&HCVs and its strategy to cash in on the new Hino engines for M&HCVs which offer the advantage of high fuel efficiency and low maintenance. The company