Tyre makers edge higher as rubber drops

Seven tyre makers rose 0.53% to 2.91% after rubber prices in the international market fell to one-week low.

Apollo Tyres (up 2.91%), Dunlop India (up 2.28%), CEAT (up 1.39%), J K Tyre & Industries (up 1.21%), Goodyear India (up 0.88%), MRF (up 0.64%) and TVS Srichakra (up 0.53%), edged higher.

At 14:05 IST, the BSE Sensex was up 312.26 points or 1.62% to 19,569.73.

Rubber declined for a second day to the lowest level in more than a week in Tokyo after Toyota Motor Corporation said its car production in Europe will be halted later this month, boosting speculation demand for tyres will weaken. The September-delivery contract lost as much as 4.6% to 438.2 yen per kilogram, the lowest level since 4 April 2011. It settled at 450.4 yen on the Tokyo Commodity Exchange.

Rubber, a key raw material used for making tyres, accounts for almost half of the total tyre manufacturing cost.

(Source: http://www.indiainfoline.com/Markets/News/Tyre-makers-edge-higher-as-rubber-drops/3646114241)