Six tyre stocks surged 3.29% to 8.29% at 15:18 IST on BSE amid declining domestic rubber prices.
CEAT (up 8.29% at Rs 797.95), Apollo Tyres (up 6.31% at Rs 204), MRF (up 5.46% at Rs 32,699), JK Tyre & Industries (up 4.8% at Rs 489.30), Falcon Tyres (up 3.7% at Rs 21) and Goodyear India (up 3.29% at Rs 659.80) edged higher.
Meanwhile, the S&P BSE Sensex was up 31.01 points or 0.12% at 26,628.12.
As per reports, rubber price, which ruled around Rs 220 per kg in January 2011, has now touched a low of Rs 123 per kg in the domestic market due to lower demand for the commodity in the wake of general economic slowdown and lower price in international market. Decline in rubber prices could boost profit margin of tyre firms. Rubber is a key raw material in tyre manufacturing.
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