/ Tyre Stocks Gain As Rubber Prices Drop ~ Ways2Capital|Stock Tips|Stock Market Tips|Intraday Stock Tips|Stock Trading Tips|NSE BSE Tips

Thursday, 16 March 2017

On Wednesday, March 15, the stocks of tyre companies were riding high following the effect of a sharp decline in rubber prices. Natural rubber in the benchmark Kochi market observed a steady downtrend to close at Rs 15,025 a quintal, which is an over 7% decline from Rs 16,175 a quintal a month before.

The TVS Srichakra stock leaped 8.3% to close at Rs 3,320.5, while the stock of MRF gained 7.3% to close at Rs 56,854.5, compared to Rs 52,981.3 on Tuesday. However, the stocks of Apollo Tyres, JK Tyre Industries and CEAT gained 4.58%, 3.10% and 2.85% respectively, on Wednesday.

As per a leading Industry official, this sharp drop in the prices of natural rubber would lead to enlarged profit margins of tyre manufactures, assuming other costs remain the same, hence the tyre stocks are on a roll today.

Whereas, Ceat is up by 0.1%, MRF is up by 0.1%, Apollo Tyres is up by 0.8% and JK Tyre is up by 2% in Thursday’s trading session.

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