Shares of five tyre makers fell by 2.25% to 4.3% at 13:03 IST on BSE after China's central bank moved to devalue its tightly controlled currency, stoking fears of Chinese exports becoming cheaper.
JK Tyre & Industries (down 4.3%), MRF (down 3.48%), Apollo Tyres (down 3.44%), Dunlop India (down 2.36%) and CEAT (down 2.25%), edged lower. Falcon Tyres was up 4.91%.
The S&P BSE Sensex was down 167.03 points, or 0.59% at 27,934.69.
A devalued currency will make Chinese goods cheaper overseas. Dumping of cheaper tyres by China will hurt the Indian tyre industry.
China's central bank today, 11 August 2015, lowered the value of the yuan by changing the way in which it calculates the yuan's daily midpoint against the US dollar. The latest move from the Chinese central bank resulted in the yuan weakening by 1.9% at 6.2298. The devaluation of the currency comes after trade data at the weekend showed Chinese exports sank 8.3% in July.
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