Ashok Leyland shares fell as much as 5 per cent today, extending their Monday’s selloff. In last two trading sessions, the shares of the commercial vehicle manufacturer has fallen nearly 9 per cent. The selloff in Ashok Leyland shares was triggered by its disappointing July sales numbers. The commercial vehicle manufacturer reported 5 per cent decline in its sale volume at 10,492 units for the month of July compared to 11,054 units last year. Ashok Leyland’s July sales were impacted by 7 per cent fall in medium and heavy commercial vehicles sales to 8,182 units. Meanwhile, global brokerage Credit Suisse has downgraded Ashok Leyland to “underperform” from “neutral” and cut target price on the stock by 15 per cent to Rs 77. Credit Suisse said commercial vehicle sales of Ashok Leyland are likely to disappoint going forward. The brokerage has reduced its FY17 volume growth estimates for Ashok Leyland to 12 per cent from 22 per cent earlier. As of 11.50 a.m., Ashok Leyland shares traded 2.73 per cent lower at Rs 89.1 apiece underperforming the Nifty, which was up 0.28 per cent.
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