MRF, CEAT, other tyre stocks rise as crude oil gives up entire West Asia war gains

Shares of tyre companies were trading in the positive territory on Thursday, June 25, after the crude oil erased all gains accumulated during the West Asia war.

Apollo Tyres stock climbed 2.66% to ₹433 per share on the National Stock Exchange (NSE) at 10:13 am. Shares of CEAT were up 1.69% to 3,509.20 apiece.

Shares of Balkrishna Industries and JK Tyre & Industries rose 1.58% and 1.44%, respectively.

MRF Ltd, India's largest tyre manufacturer, saw its share prices increase 0.76% to ₹1,31,106 per unit. It has a market capitalisation of ₹55,618.35 crore.

This comes at a time when Brent crude fell below $73 a barrel for the first time since February 27.

At 10:13 am, the Brent crude oil futures were down 1.64% at $72.52 per barrel. West Texas Intermediate was trading 1.27% to ₹69.45 per barrel.

"Crude oil prices have extended their recent decline. Oil has now erased most of the gains recorded during the recent Middle East conflict as concerns over supply disruptions have eased, geopolitical risk premiums have unwound and global supply conditions have continued to improve," Ponmudi R, CEO of Enrich Money, an online trading and wealth-tech firm, said.

Market benchmark indices NIFTY and SENSEX rallied on Thursday amid strong global cues.

SENSEX advanced 546 points to 77,537, while NIFTY up 0.64% to 24,175.

From the NIFTY firms, IndiGo, Maruti Suzuki, Mahindra & Mahindra, Maxhealth, Dr Reddy's, Shriram Finance, Eicher Motors and TCS were among the major winners.

Titan, Hindalco, Power Grid, Coal India, ONGC, SBI Life, BEL, NTPC, Tata Steel, Tech Mahindra and Grasim Industries were among the laggards.

In Asian markets, Japan's Nikkei 225 index gained nearly 4%, South Korea's Kospi climbed over 5% and Shanghai's SSE Composite index traded marginally in the green. In contrast, Hong Kong's Hang Seng index quoted lower.

US markets settled on a subdued note in the previous trade.