India's tyre makers gain as rubber prices slump

Written by Reuters | Updated: Jun 5 2014, 20:24pm hrs
MRF tyresApollo Tyres gains 2 percent, MRF up by 2.2 percent, Ceat jumps 4.5 percent and JK Tyre rises 2.1 percent. Image Courtesy: Reuters
Shares of India's tyre makers gain 2 to 4 percent as prices of natural rubber fell to their lowest in 4-1/2 years in the global market.

Apollo Tyres Ltd gains 2 percent, MRF Ltd is up 2.2 percent, Ceat Ltd jumps 4.5 percent, while JK Tyre & Industries Ltd rises 2.1 percent.

Natural rubber makes up more than 40 percent of the cost of a tyre, according to analysts.

Indian tyre makers are increasing imports of natural rubber as it is cheaper overseas compared to local supplies.