Tyre stocks in limelight; gain up to 20%

Stocks of tyre companies were in limelight today, surging as much as 20 per cent on hopes that sharp fall in rubber prices could boost their profitability.
Shares of Ceat skyrocketed 20 per cent, JK Tyres soared 18.13 per cent, MRF jumped 8.92 per cent and Apollo Tyres climbed 8.32 per cent on the BSE.
Similar buying was seen in other tyre stocks. Goodyear India rose by 5.92 per cent, TVS Shrichakra (5 per cent), Dunlop India (4.92 per cent) and Falcon Tyre (4.89 per cent).
"Tyre stocks like Apollo Tyres and CEAT were in limelight as rubber prices have seen correction recently, which can be profitable for the companies," said Nidhi Saraswat, Senior Research Analyst, Bonanza Portfolio Ltd.

In the broader market the BSE benchmark Sensex ended the day with a gain of 293.15 points at 27,319.85.