Indian tyre companies shares gain on oil prices slide

JK Tyre & Industries

28/11/2022 07:56

** Tyre stocks Apollo Tyres Ltd  APLO.NS , CEAT Ltd
 CEAT.NS , JK Tyre  JKIN.NS  surge 4%-9% as costs of raw
materials, including crude oil, dropped
    ** "The slide in crude prices along with the fall in natural
rubber price are positive triggers for tyre stocks," said AK
Prabhakar, Head of Research at IDBI Capital
    ** Oil  LCOc1  slid as protests in top importer China over
strict COVID-19 curbs fueled demand concerns. Rubber prices,
though higher on the day, could be hit by China protests O/R 
 RUB/T 
    ** Prabhakar says November auto sales expectation is "also
very upbeat," which could aid tyre stocks
    ** APLO hits record high, while CEAT is at a 4-yr peak
    ** UBS said in Friday note it expects Apollo to benefit from
robust domestic growth in medium term on strong freight demand
and commercial vehicle upcycle
 (Reporting by Biplob Kumar Das in Bengaluru)
 ((Biplobkumar.das@thomsonreuters.com))