Tyre Stocks
JK Tyre, CEAT and Apollo Tyres shares fall 3–8% amid Middle East conflict
Mumbai/IBNS: Shares of tyre manufacturers including JK Tyre & Industries, CEAT and Apollo Tyres declined between 3 and 8 percent on Monday amid concerns over rising input costs triggered by the escalating Middle East conflict, media reports said.
According to a report by CNBC-TV18 quoting brokerage firm CLSA, the stocks fell as the ongoing conflict has pushed raw material costs up by 15 to 20 percent.
The surge in oil prices and natural rubber costs has squeezed profit margins for tyre manufacturers.
In addition, the weakening of the Indian Rupee against the US Dollar has further increased the cost of importing natural and synthetic rubber, significantly impacting input costs for the sector.
Meanwhile, the broader Indian stock market also witnessed a major sell-off on Monday as escalating Middle East tensions rattled investor sentiment.
The BSE Sensex plunged nearly 2,400 points at the opening bell and continued to trade sharply lower hours later. Though it recovered slightly, the index was still down by around 1,800 points.
The NSE Nifty 50 opened below the 24,000 mark and, according to the latest update, was trading more than 500 points lower.
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