The Indian markets are in the middle of an earnings season, with 100s of companies are publishing their quarterly earnings for the first quarter of the new fiscal year or FY25. As the results roll in, the markets react to according to the tone and tenor of the numbers that trickle in. Amidst this, an interesting phenomenon has been observed.
Tyres Stocks Zoom
The major tyre stocks listed on the Indian equity markets have been blooming in green on the first day of the new trading week.
This list of green shares includes the likes of Goodyear Tyre, whose stocks gained 2.60 per cent or Rs 30.95, climbing to Rs 1,221.60 per share in the early hours of the day's trade.
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JK Tyre saw the biggest rise amongst its peers, as it witnessed its shares rise by a mammoth 11.59 per cent or Rs 52.30, crossing the 500 mark, scaling to Rs 503.40. |
Goodyear was not alone, as it had the company of many other industry majors. JK Tyre saw the biggest rise amongst its peers, as it witnessed its shares rise by a mammoth 11.59 per cent or Rs 52.30, crossing the 500 mark and scaling to Rs 503.40.
Natural Rubber Prices Rise
Industry titan and Chennai-based company MRF also saw its shares rise by 2.77 per cent or a lumpsome Rs 3,598.41, taking the overall value of individual shares to Rs 1,33,276.95.
Apollo Tyres jumped to Rs 546.10, increasing in value by 5.26 per cent or Rs 27.30.
This was done in response to the rise in raw materials, particularly natural rubber. According to the rubber board, the price of RSS4 category rubber stands at Rs 20,700.0 per 100 kg, while the price of RSS5 category rubber stands at Rs 20,500.0 per 100 kg. |
TVS Srichakra also rose by 1.96 per cent or Rs 88.70, jumping to Rs 4,613.15 per share. The Mumbai-based Ceat Tyres also jumped by 6.23 per cent or Rs 163.30, taking the overall value to Rs 2,786.00.
This development is similar to the surge seen about a fortnight ago. And this is largely being attributed to the rising price of tyres. In fact, earlier this month, on July 1, the domestic market upped prices by 1–2.5 per cent. In addition, major tyre companies had guided a 4-5 per cent rise in raw material costs for Q1 FY25.
This was done in response to the rise in raw materials, particularly natural rubber. According to the rubber board, the price of RSS4 category rubber stands at Rs 20,700.0 per 100 kg, while the price of RSS5 category rubber stands at Rs 20,500.0 per 100 kg.
