Shares of Ashok Leyland fell for the 3rd day. Know why

Ashok Leyland Ltd., India's 2nd largest vehicle maker, fell for the 3rd day on Tuesday despite reporting very strong growth in monthly sales for August. The stock was caught up in the wider carnage that is going on at Dalal Street.

Ashok Leyland said sales of Medium & Heavy Vehicles rose 53 percent to 8,903 units in August compared with 5,832 units in the same month a year ago. Light Commercial Vehicle sales were up 6 percent to 2,641 units and total sales jumped 39 percent to 11,544 units in August compared with 8,333 units in the year ago month.

But Ashok Leyland plunged 4.90 rupees, or 5.4 percent, to 85.40 rupees on the National Stock Exchange where 20.1 lakh shares were traded versus the 5-day average of 21.34 lakh shares.

The company has seen its market capitalisation jump 120 percent to 25,100 crore rupees in the past one year.

Image credit: Indiatimes