In spite of positive factors such as better Q1 FY19 earnings, normal monsoon, benefits of GST and increase in MSP, almost half of Indian tyre companies reported a negative growth during the period of June 21, 2018 to August 24, 2018 as the escalating US-China trade war and the political crisis in Italy weakened the sentiments of Indian equity markets.
During the period of June 21, 2018 to August 24,2018, stocks of Apollo Tyres fell by 4.68%. MRF’s stocks had steady movements in the first three weeks of the period and surged in the next two weeks. However, in the first two weeks of August, the company’s stocks fell sharply.
Unlike MRF and Apollo Tyres, stocks of BKT steadily increased on the bourses and reported an increase of over 20% in the period. Stocks of JK Tyre had ups and downs in the first five weeks of the period of June 21, 2018 to August 24, 2018. From the second week of August, the company’s stocks remained flat and had a 1.48% fall in the period.
After having small ups and downs, stocks of Ceat posted a 6.22% growth in the period. After remaining volatile till the middle of August, Goodyear India’s stocks plunged on the bourses and had a 7.18% fall in the period.
(Read the full story in the September-October 2018 issue of Rubber Asia)