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Tyre stocks drop on firm rubber prices

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Key benchmark indices languished in the negative terrain in afternoon trade. At 13:20 IST, the barometer index, the S&P Sensex, was down 140.81 points or 0.44% at 31,873.38. The index was down 47.45 points or 0.48% at 9,931.10. Global stocks fell today, 9 August 2017, as rising geopolitical concerns after the US and North Korea exchanged threats marred investors' sentiment.

The was trading below the psychological 32,000 mark after sliding below that level in opening trade. Domestic stocks saw a gap-down opening on negative global cues. Stocks cut losses in morning trade as select index pivotals were off intraday day lows. Key indices extended fall in mid-morning trade on fresh selling in index pivotals. Stocks languished in the red till afternoon trade.

The S&P Mid-Cap index was down 0.96%. The S&P Small-Cap index was down 0.68%. The fall in both these indices was higher than the Sensex's decline in percentage terms.

The broad market depicted weakness. There were more than two losers against every gainer on 1,710 shares declined and 687 shares rose. A total of 117 shares were unchanged.

IT stocks were mixed. Tech Mahindra (down 1.07%) and HCL Technologies (down 0.45%) declined. TCS (up 0.29%), Infosys (up 0.72%), and Wipro (up 0.16%) edged higher.

Tyre stocks dropped on the back of a surge in international rubber prices. Apollo Tyres (down 2.4%), JK Tyre & Industries (down 2.17%), MRF (down 1.26%) Goodyear India (down 0.85%), and CEAT (down 3.29%) fell. Rubber is a key raw material in tyre manufacturing.

The rubber price increased almost 2% per 100 Kg, Bangkok as on 9 August 2017. The rubber price per 100 Kg, Kaula Lumpur also rose today, 9 August 2017.

Mangalam Cement lost 2.25% after net profit fell 46.4% to Rs 12.11 crore on 12.8% increase in net sales to Rs 254.03 crore in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 8 August 2017.

RSWM tumbled 9.37% after the company reported net loss of Rs 5.90 crore in Q1 June 2017, compared with net profit of Rs 35.69 crore in Q1 June 2016. The result was announced after market hours yesterday, 8 August 2017. RSWM's net sales fell 2.5% to Rs 705.60 crore in Q1 June 2017 over Q1 June 2016.

Jindal Steel & Power rose 0.97% after the company's net loss narrowed in Q1 June 2017 over Q1 June 2016. The result was announced after market hours yesterday, 8 August 2017. On a consolidated basis, the company reported net loss of Rs 420.46 crore in Q1 June 2017, lower than net loss of Rs 1238.11 crore in Q1 June 2016. Net sales rose 23.61% to Rs 5607.27 crore in Q1 June 2017 over Q1 June 2016. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) rose 33% to Rs 1353 crore in Q1 June 2017 over Q1 June 2016.

Sintex Industries tumbled 6.14% to Rs 29.80 after Blackrock Funds International Opportunities Portfolio sold 53.56 lakh shares of the company at Rs 33.11 per share in a bulk deal on the NSE yesterday, 8 August 2017.

Meanwhile, India's diplomatic efforts to end a seven-week military standoff with China have reportedly hit a roadblock, prompting Chinese state-run media to trumpet rhetoric of "unavoidable countermeasures" on the unmarked border. China has insisted that India unilaterally withdraw its troops from the remote Doklam plateau claimed by both Beijing and Indian ally Bhutan.

Overseas, European stocks edged lower in early trade and Asian stocks declined as investors took a risk-off approach after the US and North Korea exchanged threats amid escalating tensions between the two nations. North Korea reportedly said it is considering plans for a missile strike on the US Pacific territory of Guam, just hours after President Donald Trump told North Korea that any threat to the United States would be met with "fire and fury".

Meanwhile, China's producer price gains held steady in July on surging commodity prices, as demand stayed resilient and the government's drive to reduce industrial capacity takes hold. China's consumer inflation unexpectedly slowed in July on continued weakness in food prices and cheaper non-food items. China's consumer price index in July increased 1.4% from a year earlier, compared with a 1.5% gain in June.

US stocks finished near lows of the session yesterday, 8 August 2017 reversing earlier gains as an early rally in financial, tech and energy stocks fizzled amid tough talk from President Donald Trump on North Korea. In US economic news, the Labor Department reported on Tuesday that the number of job openings in June vaulted to 6.16 million from 5.7 million in May.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, August 09 2017. 13:16 IST
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