Tyre stocks under pressure; Apollo Tyres down over 10%

JK Tyres, MRF, Ceat ,and Goodyear India were down 4%-6% on the BSE.

Shares of tyre makers such as JK Tyre & Industries, MRF, Ceat, Goodyear India and Apollo Tyres have fallen by up to 11% after after China's central bank moved to devalue its tightly controlled currency, stoking fears of Chinese exports becoming cheaper.

A devalued currency will make Chinese goods cheaper overseas. Dumping of cheaper tyres by China will hurt the Indian tyre industry.

Among the individual stocks, Apollo Tyres has dipped 11% to Rs 186 on the BSE, after the company reported a consolidated net profit of Rs 291 crore, in line with the analyst estimates, for the quarter ended June 2015.

Consolidated total income from operations however, declined by 12% to Rs 2,845 crore during the quarter against Rs 3,236 crore in the corresponding quarter of pervious year. Analyst on an average had expected net sales of Rs 3,134 crore.

JK Tyres & Industries (down 6.2% at Rs 109), MRF (6% at Rs 41,998), Ceat (4.4% at Rs 973) and Goodyear India (4% at Rs 608) were down more than 4% as compared to 0.69% fall in the S&P BSE Sensex at 02:22 PM.

Meanwhile, most of the tyre stocks had outperformed the market by gaining between 23%-63% in past two months as against 6% rise in the benchmark index till yesterday