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Tyre stocks in focus; JK Tyre, Balkrishna Industries hit 52-week high

 

New acquisition sets the wheel in motion for JK Tyre

  Shares of tyre manufacturers were trading higher after natural rubber prices hit nearly three-month low. Balkrishna Industries, JK Tyre & Industries, Apollo Tyres, Ceat, MRF, Goodyear India and TVS Srichakra have rallied by up to 8% on the BSE in intra-day trade. At 02:55 pm, the S&P BSE Sensex was up 0.55% at 27,935.

On Friday, the price of the benchmark ribbed smoked sheet or RSS-4 grade fell to Rs 129 a kg, its lowest level since June 1, 2016. The rubber prices declined 10% from its recent high of Rs 145 on August 2, 2016.

Lower rubber prices could make a larger impact on the tyre manufacturing industry as its accounts around 40% of input cost.

Among the individual stocks, Balkrishna Industries has rallied 8% to Rs 842, also its 52-week high on the BSE in intra-day trade. JK Tyre & Industries too, touch 52-week high of Rs 130, up 6% on the BSE.