Apollo, Ceat and MRF are riding high on low crude prices

Apollo Tyres led other tyre makers higher in trade today on expectations that the sector's raw material costs may come down a bit as crude oil prices slumped to 3-month lows in global markets.

Tyre companies use intermediates such as synthetic rubber which are derived from crude oil's cracking. Therefore, a fall in crude oil prices is beneficial for such companies. Such raw materials constitute up to 50 percent of costs for Tyre makers. They lead the gainers list on the automobile and auto-ancillary space as well.

Apollo Tyres surged 3.9 percent to 178.90 rupees. Ceat added 2 percent to 713.50 rupees. MRF rose 1.5% to 35,335 rupees. Goodyear gained 1.3 percent to 566 rupees and TVS Srichakra was up 2.5 percent to 2,321 rupees.

(Image credit: Indiatimes)