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Tyre makers gain as rubber prices slump

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Reuters
Last Updated : Jun 05 2014 | 3:29 PM IST

Reuters Market Eye - Shares of tyre makers gain 2 to 4 percent as prices of natural rubber fell to their lowest in 4-1/2 years in the global market.

Apollo Tyres Ltd gains 2 percent, MRF Ltd is up 2.2 percent, Ceat Ltd jumps 4.5 percent, while JK Tyre & Industries Ltd rises 2.1 percent.

Natural rubber makes up more than 40 percent of the cost of a tyre, according to analysts.

Indian tyre makers are increasing imports of natural rubber as it is cheaper overseas compared to local supplies.

(Reporting by Abhishek Vishnoi)

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First Published: Jun 05 2014 | 3:13 PM IST

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