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