Ashok Leyland announced post trading hours on Monday that it has signed a memorandum of understanding (MoU) with ICICI Bank for a strategic financing partnership for two years.
The MoU will enable both Ashok Leyland and ICICI Bank to offer customised financial solution to customers across lndia with focus on semi-urban and rural geographies. With this MoU, ICICI Bank will be a preferred financier for providing finance to the customers buying Ashok Leyland vehicles.Ashok Leyland reported a 35% fall in total vehicle sales to 9857 units in October 2019 as against 15149 units in October 2018. Total medium and heavy commercial vehicles (M&HCV) sales declined 48% to 5126 units in October 2019 over October 2018. Signed MoU can help the company out of the economic slowdown as it will provide more funding options to customers.
Shares of Ashok Leyland were trading 0.54% higher at Rs 83.75. The stock has surged 12.19% in last one month compared to a 2.6% rise in Nifty Auto index.
On the technical front, the stock's RSI (relative strength index) stood 66.545. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading above its 50-day and 200-day moving average (DMA) placed at Rs 73.33 and Rs 80.25 respectively.
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Meanwhile, the NSE Nifty 50 index was up 0.3% and trading at an all time high of 12,110.45.
Ashok Leyland, flagship of the Hinduja group, is the 2nd largest manufacturer of commercial vehicles in India, the 4th largest manufacturer of buses in the world, and the 10th largest manufacturers of trucks.
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