 "Price hikes fuel rally in tyre stocks")
Tyre stocks have jumped 10-14 per cent over the last month on expectations that higher volumes, market share gains from Chinese players, price hikes of 8-10 per cent since the start of the year, and any government action on Chinese imports will reflect favourably on tyre makers.
On the price hikes, Nitesh Sharma and Dhawal Doshi of Phillip Capital say with the competitive scenario easing—less Chinese imports—all tyre companies have been undertaking synchronised price hikes to fight cost pressures. The industry could end up with a cumulative 15 per cent price hike from the start of the year till date.
