Shares of tyre manufacturing companies rose 0.51% to 7.41% at 14:15 IST on BSE after the government imposed an anti-dumping duty on a certain types of tyres in order to remove injury to the domestic industry.
JK Tyre & Industries (up 7.41%), Apollo Tyres (up 2.24%), Goodyear India (up 2.91%), MRF (up 0.85%), Balkrishna Industries (up 0.51%) and CEAT (up 1.65%) gained.
Meanwhile, the S&P BSE Sensex was up 34.63 points or 0.1% at 32,434.19
The government imposed an anti-dumping duty on a certain types of new/unused pneumatic radial tyres in the range of $245.35 to $452.33 per tonne with or without tubes and/or flap of rubber (including tubeless tyres) having normal rim dia code above 16 inches, used in buses and lorries/trucks originating in, or exported from China and imported into India.
The anti-dumping duty imposed shall be effective for a period of five years (unless revoked, superseded or amended earlier) from 18 September 2017 and shall be payable in Indian currency, according to a notification by the Central Board of Excise and Customs.
As per reports, the tyre industry gets nearly half of its revenue from trucks and buses radial tyres. These companies could potentially see a good margin improvement and earnings upgrade due to anti-dumping duty slapped on Chinese tyres.
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