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Showing posts from December 16, 2018

Tyre stocks gain on easing oil prices; JK Tyre, Kesoram up over 5%

Shares of tyre manufacturing companies have rallied by up to 14% on the BSE in early morning trade in an otherwise subdued market on easing crude oil prices. Kesoram Industries has surged 14% to Rs 94.40, while JK Tyre soared 7% to Rs 110 on back of heavy volumes. Shares of TVS Srichakra, Apollo Tyres, MRF, Balkrishna Industries and Ceat were up in the range of 1% to 3% on the BSE in intra-day trade. In comparison, the S&P BSE Sensex was down 0.39% at 36,340 points at 09:58 am.
On Wednesday, the prices of Brent crude was seen at $56.6 a barrel, dipping sharply from the over $80 a barrel mark during the first week of October. 0:00/0:00 Skip in 5 Carbon black and synthetic rubber, which form a major portion of the raw materials for tyre industries, are crude-based, hence, a change in crude oil prices have an impact on tyre stocks. During September quarter, higher crude prices and crude linked raw materials’ prices impacted the profitability sequentially of most of the tyre co…