Tyre stocks rise on low rubber prices

Shares of tyre manufacturers rose sharply on Monday due to falling rubber prices and encouraging monthly sales numbers by automakers. Investor sentiment towards tyre makers has turned bullish on rising car sales. Prices of natural rubber, the most important raw material for the industry, have dropped to nearly five-year low in the international market. Most companies have increased their rubber imports. Shares of Apollo Tyres, JK Tyre and CEAT rose about five per cent each, while MRF closed 1.4 per cent higher.