Q3 hopes drive up Ashok Leyland

DALAL STREET SPIKES

Expectations of good third quarter results drove up Ashok Leyland on the bourses yesterday. The counter hit a 52-week high of Rs 294.75 before closing at Rs 293.70, up by 5.78 per cent.

More than 1.94 lakh shares were traded on the BSE. The counter has moved up on the bourses on the back of good buying interest in the last few months.

Players point out that the company is expected to post strong Q3 results on the back of strong vehicle sales and continued cost cutting.

The company is witnessing a cyclical uptrend in the commercial vehicles segment. This has a strong co-relation with the country's economic growth, say market sources. Ashok Leyland reported a 39 per cent rise in sales at 28,439 units for April-November 2003.

Sales are expected to be good on the back of a good monsoon and falling interest rates.