Tyre stocks on a roll

Shares of four tyre makers spurted 0.82% to 3.58% at 11:04 IST on BSE as domestic rubber prices have fallen to a five-year low.

CEAT jumped 3.58% at Rs 806.05. The stock hit a record high of Rs 848.90 in intraday trade.

JK Tyre & Industries rose 2.65% at Rs 380.30. The stock hit a record high of Rs 391.55 in intraday trade.

Apollo Tyres rose 1.67% at Rs 213.15. The stock hit a record high of Rs 217.70 in intraday trade.

MRF rose 0.82% at Rs 29,830. The stock hit a record high of Rs 30,289 in intraday trade.

Meanwhile, the S&P BSE Sensex was down 80.17 points or 0.29% at 27,239.68.

Tyre stocks were on a roll aided by lower rubber prices. As per reports, domestic rubber prices have seen sharpest fall in five years, hitting Rs 126 per kg. Decline in rubber prices could boost profit margin of tyre firms. Rubber is a key raw material in tyre manufacturing. Also recent steep decline in crude oil prices aided rally in tyre stocks. Nearly 30% of raw material for tyres is derived from crude products.

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