Shares of four tyre companies rose 0.98% to 3.33% at 12:31 IST on BSE as natural rubber prices declined.
CEAT (up 3.33% at Rs 356.80), JK Tyre & Industries (up 2.85% at Rs 167.70), MRF (up 1.21% at Rs 19,325) and Apollo Tyres (up 0.98% at Rs 118.15) edged higher.
Meanwhile, the S&P BSE Sensex was down 43.34 points or 0.21% at 21,090.87.
Rubber futures in Tokyo reached a five-month low as stockpiles in China continued expanding, deepening concern that demand from the largest user is slowing. The contract for delivery in June 2014 on the Tokyo Commodity Exchange was down 1.48% at 252.50 yen a kilogram. The contract dropped as much as 3.9% to 246.4 yen a kilogram in intraday trade, the lowest level since 8 August 2013. Futures extended last week's 6.6% drop, the most since the five days through 19 April 2013.
Decline in rubber prices could boost profit margin of tyre firms. Rubber is a key raw material in tyre manufacturing.
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