All seven tyre stocks - MRF, Apollo Tyre, JK Tyre, Falcon Tyre, Ceat, Goodyear India and TVS Srichakra gained more than 4% each after the companies decided to pass on the increase in excise duty to its customers, effective March 2.
The Union Budget presented last week proposed an increase in excise duty on tyres from a current level of 8% to 10%. The excise duty on some raw materials such as Styrene Butadiene Rubber (SBR), Nylon Tyre Cord Fabric (NTCF) and carbon black has also been proposed to be hiked from 8% to 10%.
Apollo Tyres, Goodyear India and JK Tyres were trading at their all-time high market price on the Bombay Stock Exchange (BSE) today. The volume on these counters surged by almost six-fold as compared to average trading volume in last two weeks.
JK Tyre and Industries was the biggest gainer among the pack, surging 14% to Rs 196 levels by close. The counter saw trading volumes of 1.43 million shares as against an average 133,000 shares that were traded in last two weeks.
Ceat was up 13% to Rs 156, followed by the MRF and Apollo Tyre (7% each). TVS Srichakra rallied 6% to Rs 238 levels, while Falcon Tyres was up by 4% to Rs 170 levels on the BSE.
Source : Business Standard