In spite of positives like reduction of GST on 88 goods and better corporate results, stocks of most Indian tyre majors suffered steep decline due to depreciation of Indian rupee to record low, rising crude oil prices, increasing worries over escalating US-China trade spat etc.
During the period August 27, 2018 and October 15, 2018, the BSE sensex had around 10% fall , while tyre companies, stocks reported a double-digit decline.
The reduction in Goods and Service Tax (GST) on 88 goods and services and better-than-expected quarter results gave a momentum at the start of August. However, the equity markets witnessed volatility during the month after the Reserve Bank of India’s monetary policy and escalating US-China trade spat.
During the period of August 27, 2018 and October 15, 2018, Apollo Tyres stocks reported a fall of 18%. MRF had a 14.87% fall in its stocks in the period.
The BKT stocks had a 21% fall in the entire period of August 27, 2018 to October 15 ,2018. Stocks of JK Tyre slid down for most part of the period and moved up only at the end of the period. Finally the JK Tyre stocks reported a fall of 27% during the period.
Ceat’s stock climbed up marginally in the second week of October but reported a 21% fall in the period. Stock of Goodyear India fell 12.82% during the period. However, Modi Rubber’s stocks managed to report a 5.50% growth in the period.