Shares of tyre makers gained upto 5 per cent in intraday trade on Tuesday after prices of natural rubber prices in the local market fell to their lowest level in six weeks following a drop in global prices.
MRF gained 2.05 per cent, while Apollo Tyres surged 4.8 per cent, while JK Tyre & Industries rose 4.49 per cent in intraday trade.
MRF ended flat, up 0.95 per cent at Rs 35,134.95, while Apollo Tyres closed the session 3.28 per cent higher at Rs 177.85. JK Tyre and Industries ended the day at 87.95, up 2.69 per cent or Rs 2.30.
Benchmark TOCOM rubber futures extended losses into a third session on Tuesday, as weaker oil prices and worries about slumping Shanghai futures prompted investors to unwind long positions.
Natural rubber makes up more than 40 percent of the cost of a tyre and a fall may improve companies’ margins.
– India Times
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