Ashok Leyland Falls 2.94% as Crude Oil Spikes, June 09

Ashok Leyland fell 2.94% to Rs 141.02 on June 8, 2026, as crude oil spiked to $97 per barrel and the commercial vehicle sector faced mounting cost pressures. The stock declined from Rs 145.29 the previous day. Higher fuel and raw material costs, combined with slowing infrastructure execution and broad FII selling, created a challenging environment for the entire auto sector on the day.

Crude Oil Surge Pressures Commercial Vehicle Makers

Brent crude crossed $97 per barrel on June 8, creating multi-layered cost problems for vehicle manufacturers. Crude is a key feedstock for rubber (tyres) and plastics used in commercial vehicles. Ashok Leyland, a leading commercial vehicle maker, faces higher commodity costs and input pressures. The CV sector led broader market losses on the day.

Nifty Auto Index Falls 1.23% Amid Sector Weakness

The Nifty Auto index fell 1.23% to 25,845.35 on June 8. Ashok Leyland led losses with a 2.55% decline, followed by Tata Motors Passenger Vehicles at -2.24% and Exide Industries at -2.06%. Broader manufacturers including M&M, Sona BLW, and Motherson also fell sharply. Rising fuel prices, higher raw material costs, and fears of a Federal Reserve rate hike dampened consumer spending across the sector.

US Jobs Data Triggers Broad FII Selling

US non-farm payrolls came in at 139,000 jobs on June 8, well above the expected 85,000. This stronger-than-expected data strengthened the Dollar and triggered broad foreign institutional investor selling of Rs 4,075.06 crore. The Nifty index fell 1.04% and VIX rose 8.2 percentage points. Technical analysts note support levels at Rs 138 with resistance at Rs 144.

What Meyka’s Data Shows

Meyka rates ASHOKLEY.BO a B with a 12-month price target of Rs 160.43, implying 13.7% upside from current levels. The RSI at 31.98 signals oversold conditions, while the stock trades at a PE of 25.45. Over the past month, Ashok Leyland has declined 16.39%, and over three months it has fallen 27.53%. The stock’s 52-week range is Rs 95.20 to Rs 215.42.

Final Thoughts

Ashok Leyland faces near-term headwinds from crude oil above $97 and FII outflows, but Meyka’s B rating and Rs 160.43 target suggest limited downside from current levels. The stock’s oversold RSI and depressed valuation may attract value buyers if oil prices stabilize.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.