Tyre stocks up as rubber prices fall

Natural rubber in benchmark Kochi market witnesses a steady decline to close at Rs 15,025 a quintal

Shares of tyre companies on Wednesday gained up to 8.3 per cent following a sharp decline in natural rubber prices.

The TVS Srichakra stock jumped 8.3 per cent to close at Rs 3,320.5.  Share price of MRF closed 7.3 per cent higher at Rs 56,854.5, compared to Rs 52,981.3 on Tuesday.

Shares of Apollo Tyres, JK Tyre Industries, Balkrishna Industries and CEAT gained 4.58 per cent, 3.51 per cent, 3.10 per cent and 2.85 per cent, respectively, on Wednesday.

A leading industry official attributed the increase to falling prices of natural rubber.  

“The decline in prices of natural rubber