Tyre stocks surge as crude oil price slump

Tyre stocks witnessed a strong opening in the Friday’s trading session. Modi Rubber was the top gainer in the tyres sector. The stock was locked in upper circuit higher by 5% at Rs 103.85 per share. Harrisons Malayalam was up by nearly 5% at Rs 82.6 per share.

Other tyre stocks like Balkrishna Industries, Good Year, CEAT Limited and MRF Limited were trading in the positive territory in morning hours on Friday.

Crude oil prices in global markets have been moving downwards on YTD basis in 2017. The sectors which need crude oil as a raw material have been cheering the price downfall. Despite OPEC’s efforts to cut the oil supply, crude oil prices have been in the downward trend in the first half of 2017.

US WTI crude futures fell by more than a percentage below USD 45 per barrel in Thursday’s trading session. US WTI crude futures have lost nearly 14% down on YTD basis and nearly 17% in the past three months.

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