Tyre stocks rally on falling rubber prices
Most of the tyre stocks rallied in Wednesday’s trade after rubber prices fall in global market.
Shares of TVS Srichakra were up by 3.74 per cent in the late afternoon trade, while Balkrishna Industries, Ceat, MRF and Apollo Tyres were up 3.69 per cent, 2.15 per cent, 0.88 per cent and 0.02 per cent, respectively, around 3 pm.
Benchmark BSE Sensex was down 200 points, or 0.60 per cent, at 32,742 around the same time.
Tokyo rubber futures slipped more than 4 per cent to a two-week low on Wednesday. Fall in rubber prices follows a decline in Shanghai futures, as tumbling base metal prices and concerns over weaker economy in top buyer China weighed on sentiment
However, JK Tyre was trading over 2 per cent down at Rs 144.50 post tepid Q2 numebers. The company on Tuesday reported 90.12 per cent fall in consolidated net profit at Rs 10.34 crore for the second quarter ended September 30, hit by higher expenses specially that of raw material prices.
The company had posted a consolidated net profit of Rs 104.65 crore in the same period last fiscal.
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Via:: Economic Times – Stocks