Lower rubber prices push up Indian tyre shares

The Hindu Business Line reports that faling rubber prices in India led to shares in India’s major tyre makers rising up to five per cent earlier this week. The newspaper stated on 5 December that Apollo Tyres, MRF, JK Tyre and Ceat were amongst those to gain, and MRF stock hit an all-time high of Rs 11,892 (£135.32) on the Bombay Stock Exchange.

Rubber prices have been on the way down since September due to the onset of the country’s harvest season, a time of the year when supply increases and prices ease. Spot rubber prices were Rs 162 (£1.85) per kilogramme on 5 December, while the NMCE rubber future price was about Rs 163-164 per kilogramme.

On the BSE, JK Tyre shares gained as much as 5.1 per cent to Rs 120.50 (£1.37). MRF shares rose 4.1 per cent while Apollo Tyres saw its share price gain 2.19 per cent to Rs 86.50 (£0.98) a share, while Ceat gained 2.38 per cent to Rs 107.50 (£1.22) a share.