This stock is set to give good returns irrespective of Lok Sabha Elections Results - What investors should know
Modi government has said in the past that it wants to double farmer income. And, Ashok Leyland is one company which focuses a lot on rural India.
The domestic markets witnessed positive sentiment ahead of Lok Sabha 2019 elections as the benchmark BSE Sensex jumped over 150 points while NSE Nifty rose 30.90 points, or 0.26 per cent, to 11,740 in early trade on Wednesday. If Narendra Modi and BJP manage to retain power, as predicted by most exit polls, another massive jump can be seen on Thursday. This puts investors on their toes to make sure they make the best of the opportunity. However, there is one stock that is unlikely to be affected by the election result - Ashok Leyland.
Zee Business TV stock market commentator and research analyst Rajat Devgan explained that one of the top priorities of the new government will be to increase the income of farmers. Modi government has said in the past that it wants to double farmer income. And, Ashok Leyland is one company which focuses a lot on rural India.
Devgan said that what works in the favour of Ashok Leyland is that the CV sector is doing incredibly well in India and if the monsoon remains good, there will be an increase in demand for tractors. "The company already has 34 per cent market share in the CV sector and it has proposed a partnership with Tesla. The latter also wants to launch e-vehicles in India. If this deal is finalised, it will be historic of Ashok Leyland and will benefit its stock," he said.
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— Zee Business (@ZeeBusiness) May 22, 2019
The Ashok Leyland share price is currently down by 48 per cent from its all-time high. The company hasn't posted great results in the last three quarters but if that performance improves, it can certainly help Ashok Leyland going forward. As many as 26 broking houses have given a buy call on this stock while 11 have asked investors to maintain hold.
Karvy has given a Rs 128 target on it while Axis Capital has given a target of Rs 105 on this share.
Foreign institutional investors bought equity worth Rs 1,185.44 crore on Tuesday, while domestic institutional investors sold shares to the tune of Rs 1,090.32 crore, provisional data available with stock exchanges showed. On the currency front, the rupee appreciated 4 paise to 69.67 against the US dollar in opening trade Wednesday. Brent crude, the global benchmark, was trading at 71.81 per barrel, lower by 0.51 per cent.