Moving in tandem with the trends on the bourses, stocks of tyre companies recovered in the period of February 25, 2019 to April 12, 2019. During the period, the BSE Sensex gained over 7%, while the stocks of tyre companies increased in the range from 1% to 9%.
In February, investors remained concerned over increasing oil prices as Saudi Arabia announced further cuts in oil production. Adding to this, terrorist attacks on armed forces in Kashmir hurt the market sentiments. At the end , the BSE Sensex was down 1.07% in February.
In the month, Goods and Services Tax (GST) collections dropped below the Rs1,000 billion mark to Rs 972.47 billion as against Rs 1,020 billion in the previous month. Foreign Portfolio Investors (FPIs) have bought stocks worth $1.86 billion, the highest since March 2018 when they had pumped in over $2 billion.
March bought some relief to the equity markets due to lowering tensions between the US and China. President Donald Trump announced he would not impose new tariffs on China as there were substantial progress in trade talks between the world’s two largest economies. At the end, the BSE Sensex was down by 7.2 % in March. Foreign Institutional Investors (FIIs) bought stocks worth $4.4 billion in March compared to $1.86 billion in the previous month.
Small gain for Apollo
Apollo Tyres’ stocks witnessed volatilities in its stocks during the period of February 25, 2019 to April 12, 2019. From the start of the period to March 5, stocks of Apollo tyres moved upwards in tandem with the movements on the bourses. However, the increase did not sustain for long and the company’s stocks plunged for the next three days.
The Gurgaon-headquartered company’s stocks once again surged on the bourses before falling till the third week of March. From the fourth week of March till the end of the period, the company’s stocks once again experienced volatility. At the end of the period, Apollo Tyres’ stocks reported a 1.80% increase thanks to the volatility.
Stocks of MRF moved flat from the start of the period to the end of March. The Chennai-based company’s stocks gained momentum in the first week of April, before falling in the second week of the month. The surge in the first week of April helped the company’s stocks to have a 6% increase in the period.
Stocks of OTR tyre major Balkrishna Industries Ltd (BKT) slowly moved up till the third week of March , before it picked up momentum. However, the company’s stocks fell steadily from the first week of April to the end of the period. During the period of February 25, 2019 to April 12, 2019, BKT’s stocks increased by 8.66 %. Meanwhile, according to a report, the company is working on a Rs 20 billion expansion plan in India to meet the increasing demand of its products globally.
JK stocks up 5%
Stocks of JK Tyre saw an increase in the second week of March and then registered a fall. At the end of March, a rise was seen in JK Tyre’s stocks before it once again slipped. During the period of period of February 25, 2019 to April 12, 2019, a 5% increase was seen in stocks of JK Tyre.
TVS Srichakra’s stocks saw volatility from the start of the period to mid-March. In the third week of March, the company’s stocks witnessed a plunge and then did not see much movements. At the end of the period, the company’s stock reported over 1% fall.
Stocks of Ceat steadily increased from mid-March, before it fell till the end of the month. In April, Ceat’s stocks saw ups and downs, and reported a 3.78% increase in the period of period of February 25, 2019 to April 12, 2019.
Unlike its peers, stocks of Goodyear India steadily increased through the period of February 25, 2019 to April 12, 2019 on the bourses and had a 9.25% increase for the period. Stocks of Modi Rubber rose over 5% in the period.