Ashok Leyland led the broader auto sector rally on Thursday, November 5, surging 10.5% to ₹170 apiece, its highest level in two months. The rally also marked the stock’s biggest single-day gain since April.
The rally followed a sharp overnight retreat in crude oil prices, while expectations of a possible easing of US trade tariffs after Democrats swept both chambers of Congress in the US midterm elections lifted Dalal Street sentiment.
Brent crude traded around $95 per barrel on Thursday, following a decline of nearly 9% in the previous session that pushed prices to a two-month low.
The midterm election outcome fuelled expectations that the Trump administration could face growing pressure to bring the war with Iran to an end. It also reflected growing voter dissatisfaction with the administration’s policies, which have rattled global markets and fuelled inflation concerns, prompting central banks to raise interest rates.
US President Donald Trump acknowledged that Republicans suffered losses largely due to the conflict and pointed to rising gasoline prices as a major contributing factor, while indicating no immediate plans to ramp up military strikes against Iran.
The Democratic victory in the US midterm elections is also being viewed as a scathing rebuke to President Donald Trump, whose administration’s global tariff policies and decision to go to war in the Middle East had contributed to the Indian market’s underperformance this year.
Meanwhile, the election results have also raised expectations of possible changes to US trade policies, including tariffs imposed by the Trump administration.
Market sentiment was further bolstered by signs of foreign investors returning to India. Foreign investors bought shares worth ₹72.84 billion on Wednesday, according to provisional data.
This was among their biggest single-day purchases in India since October 2025 and added to November’s net inflows of $1.57 billion.
Ashok Leyland reports 23% growth in October sales
Ashok Leyland on Monday reported a 23% year-on-year increase in total sales during October.
The Chennai-based automaker’s total sales, including exports, stood at 21,888 units, up from 17,820 units a year ago, according to an exchange filing.
Sales in the Medium and Heavy Commercial Vehicle (M&HCV) segment grew 28% to 13,927 units from 10,865 units, while the Light Commercial Vehicle (LCV) segment registered a 14% rise to 7,961 units.
Total domestic sales increased 24% to 20,224 units from 16,314 units a year ago, with M&HCV sales rising 32% to 12,646 units. Domestic LCV sales increased 13% to 7,578 units.
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