Tyre companies rise on weak rubber prices; Ceat up 8.4 percent

Reuters Market Eye - Shares in tyre companies extend gains, adding to sharp spikes on Monday, on the back of weak natural rubber prices that are at multi-year lows.

Rubber prices continue to fall and are trading near 5-year lows. This will continue to support margins in the medium term, said an analyst with a local brokerage.

Shares in Apollo Tyres Ltd rise 3 percent, adding to their 8 percent gain on Monday, while JK Tyre and Industries surges 4.7 percent, extending a 17.8 percent rally from the previous session.

Ceat Ltd surged 8.4 percent, adding to a 20 percent surge on Monday.

 

(Reporting by Indulal PM)