Shares of tyre companies are continue at their upward march and trading higher by up to 7% on back of heavy volumes, on hopes of higher margins due to fall in rubber prices.
Ceat, Goodyear India, JK Tyre, Apollo Tyres and TVS Srichakra have rallied in the range of 1-7% on the Bombay Stock Exchange (BSE).
Apollo Tyres has surged 7% to Rs 158 with an over five-fold jumped in trading volumes. The stock opened at Rs 147 and touched a record high of Rs 166 on the NSE. A combined 29.29 million representing 5.8% of total equity of the company has changed hands on the counter till late noon deals against an average sub 3 million shares that were traded daily in past two weeks.
Ceat too, has rallied nearly 6% to Rs 457, also its new high on the NSE. A combined 1.87 million shares changed hands on the BSE and NSE till 1320 hours.
Analyst expects the tyre companies will continue to benefit from the tailwinds of natural rubber prices softening.
Natural rubber price has declined 10% year to date to Rs 147 per kg. Lower prices would bring down the raw material cost of tyre makers, thereby boosting their profitability, as natural rubber makes up more than 40% of the cost of a tyre.
Ceat, Goodyear India, JK Tyre, Apollo Tyres and TVS Srichakra have rallied in the range of 1-7% on the Bombay Stock Exchange (BSE).
Apollo Tyres has surged 7% to Rs 158 with an over five-fold jumped in trading volumes. The stock opened at Rs 147 and touched a record high of Rs 166 on the NSE. A combined 29.29 million representing 5.8% of total equity of the company has changed hands on the counter till late noon deals against an average sub 3 million shares that were traded daily in past two weeks.
Ceat too, has rallied nearly 6% to Rs 457, also its new high on the NSE. A combined 1.87 million shares changed hands on the BSE and NSE till 1320 hours.
Analyst expects the tyre companies will continue to benefit from the tailwinds of natural rubber prices softening.
Natural rubber price has declined 10% year to date to Rs 147 per kg. Lower prices would bring down the raw material cost of tyre makers, thereby boosting their profitability, as natural rubber makes up more than 40% of the cost of a tyre.
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