Tyre Stocks

Tyre stocks surged in an otherwise subdued market on expectation of margins improvement amid falling raw material price

CLOSING BELL: RIL (down 1.45 per cent), Tech M, Dr Reddy's Labs, Bharti Airtel, Axis Bank, and TCS were the top laggards

The raw material (RM) and other input costs have started softening after a long spell of unprecedented increase, which is likely to improve margins in the medium term for tyre companies

The company expects the overall tyre industry to perform well due to easing of pandemic-led curbs, pent-up demand from OEMs, and replacement segment.

The tyre industry is expected to perform well mainly due to easing out of pandemic, increasing demand from OEMs and replacement segment.

Oil prices climbed towards their highest levels in more than seven years on Monday on fears that a possible invasion of Ukraine by Russia could trigger sanctions (on the latter) from US and Europe

BoI, Devyani Intl, Eveready, FSL, Mahindra Life, Paytm, REC, Siemens, Sintex, SPARC, Tata Steel, Thermax and Vijaya Diagnostics are some of the prominent companies to announce results today.

The CCI on Wednesday said Supreme Court dismissed a petition filed by tyre companies wherein they had challenged the regulator's order imposing penalties on them for anti-competitive practices

The management said the company is witnessing muted demand in the replacement segment due to tepid consumer sentiment, higher fuel prices and a softer uptick in India's rural markets.

Price hikes by companies have not been enough to absorb the sharp rise in input costs

Tyre companies may not be able to fully pass on the surge in raw material costs

After a strong Q3, margins may come under pressure due to rising raw material costs

The management said increased volumes in truck tyres, both radial and bias, LCV and agricultural tyres have contributed to higher sales

Shares of Oil and Natural Gas Corporation (ONGC) rose as much as 4.6 per cent to hit an intra-day high of Rs 99.35 apiece on the BSE, while those of GAIL and BPCL gained up to 3.5 per cent

JK Tyre was trading over 8 per cent higher after the company reported a strong operational performance for the September quarter.

Apollo Tyres, Ceat, MRF and JK Tyre were up 3 per cent to 7 per cent on the BSE, as compared to 1.3 per cent rise in the S&P BSE Sensex at 12:20 pm

The Kolkata-based firm, which caters to two-wheelers, three-wheelers and commercial vehicles, however, did not share reasons for raising capital.

DGFT, vide its June 12 notification, has placed import of major tyre categories in the 'restricted' category from the 'free' category earlier.

The lifting of tyre stock from factories and transporting the same to auto manufacturers came to a grinding halt after the government announced a 21-day nationwide lockdown

On Tuesday, the government imposed CVD for five years on new pneumatic radial tyres above 16 inches, which are imported from China.