Tyre Shares Carry Out Dismal Show, MRF Hits 52-Week Low

India’s leading tyre manufacturer, MRF Tyres has hit a 52-week low of Rs 31,005 in the intra-day trade on the Bombay Stock Exchange (BSE) listing, while other tyre makers too witnessed a dip in their share trading. Ceat Tyres Ltd., MRF, JK Tyres, Apollo Tyres, Balkrishna Industries and TVS Srichakra saw a fall of up to 2 percent against the 0.28 percent rise in the S&P BSE Sensex, this was recorded at 11:21 AM.

In the last two months nearly all the major tyre manufacturers had to face a decline in the market with a drop of 8 percent each compared to a 3.3 percent increase in the benchmark index. In this period, Ceat saw a downfall of 29 percent, MRF and Apollo went to a low of 15 percent each and TVS Srichakra recorded a plunge of 9 percent.

Tyre making companies are continuously under fire, with respect to tyre exports, due to rupee depreciation, growing radialisation and cut-throat Chinese competition.

An expert at the Anand Rathi Share and Stock Brokers, Mr. Mayur Milak thinks that these issues will continue in the first half of 2017 fiscal, therefore, the export numbers will continue to diminish further. Even so, they are expecting a larger replacement demand from the market and a better monsoon together with a recovery in the rural economy.

Author: Ankit verma

My need for speed began at a very early age and I realised this as soon as I got my first bicycle at the age of 8. When all the other kids would break downhill I would pedal harder just to go faster and enjoy the thrill. Adding to my interest for speed, I grew engrossed in the working mechanics of two wheelers thanks to my father as he is a hydraulic mechanic and would take me along with him on his repair sessions. Eventually I became familiar with the tools and basic technical concepts of two wheelers.Super sport and sport tourers are more of my liking and the sparks to these flames were ignited the first time I experienced the maddening power of a Yamaha YZF R1. I was just 14 years old at the time and got to ride as a pillion with an older acquaintance. This one short ride influenced my every decision in terms of the bikes I want to own. As of today I’m 26 years old and a proud owner of a Yamaha Fz15 version 2.0 and a Kawasaki Ninja 650 2014 model having clocked a decent 30k Kms only while touring, waiting to clock 1000s more as riding makes me feel whole again after enduring the dismal routines of life. Read more