Stock market today: Ashok Leyland share price hits new high as Sensex climbs to a new peak

Stock market today: Following a strong bias in the Indian stock market, Ashok Leyland share price witnessed bulls' attention in the early morning session on Wednesday. Ashok Leyland share price today opened with an upside gap and touched an intraday high of ₹241.50 per share within a few minutes of the stock market's opening bell. While climbing to this intraday high, Ashok Leyland shares also touched a new lifetime high.

According to stock market experts, the market is expecting resilience in the Indian economy after the record GST collection and better-than-expected GDP numbers. They said that in Modi 3.0, these economic indicators of the national economy are expected to improve, which has sparked buying in auto stocks. They went on to add that the better-than-expected monsoon prediction has also sparked better sales for commercial vehicles, especially tractors. That's why Ashok Leyland shares touched a new peak after the buying buzz in early morning deals on Wednesday.

Also Read: Modi 3.0: Can Anil Ambani emerge as next market leader like Gautam Adani?

Triggers for Ashok Leyland share price rally?

Speaking on the reasons fueling Ashok Leyland shares, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Auto stocks are expected to outperform other segments in the near term. Resilience in the Indian economy and better-than-expected GDP numbers could explain this rise in Ashok Leyland share price. In the wake of Modi 3.0, the Indian economy is expected to improve its economic indicators like GDP growth, GST collection, etc. The market is discounting on the better-than-expected monsoon this year, which is expected to fuel commercial vehicles, especially tractors. As Ashok Leyland is in the commercial vehicle segment, bulls are betting high on this scrip.”

Explaining the positive correlation between a robust economy and Ashok Leyland shares, Gorakshkar said, "In a thriving economy, the purchasing power of buyers escalates. With increased income, people tend to invest in homes, vehicles, and other lifestyle luxuries. A bike owner might upgrade to a four-wheeler, while a basic four-wheeler owner might opt for high-end vehicles. This symbiotic relationship between a strong economy and Ashok Leyland shares is a reassuring sign for investors."

Ashok Leyland share price target

Anticipating a promising future for Ashok Leyland shares, Sumeet Bagadia, Executive Director at Choice Broking, expressed, "Ashok Leyland share price has established a robust foundation at ₹225, while the auto major is encountering resistance at ₹250. Upon overcoming this obstacle decisively, Ashok Leyland share price could potentially reach ₹270 per share in the near term, offering a significant opportunity for profit."

With a strong vote of confidence, the Choice Broking expert advised Ashok Leyland shareholders to hold the scrip, maintaining a stop loss at ₹225, for the near-term target of ₹270. He also recommended new investors to consider buying Ashok Leyland shares at the current market price for the short-term target of ₹270, maintaining a stop loss at ₹225 per share.

Stock market today

On Dalal Street, frontline indices witnessed strong upside movement on Wednesday. The Nifty 50 index opened upside and touched a new lifetime high of 23,441, whereas the BSE Sensex hit a new peak of 77,079. The Nifty Bank index also regained the 50,000 level and touched an intraday high of 50,233.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.