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Shares of tyre companies fell sharply on Tuesday.
Ceat plunged 8.29 per cent or Rs 74.75 to Rs 827.05, Apollo Tyres lost 5.32 per cent or Rs 9.75 to Rs 173.60 and JK Tyres was down Rs 1.45 or 1.14 per cent at Rs 125.35 on the NSE.
Higher rubber prices and sluggish auto demand contribute to the fall, traders said.
The benchmark Tokyo rubber futures closed 3.5 per cent higher on Tuesday.
Barclays said the auto industry’s volume growth for Q4 FY15 saw a marked deceleration. It added that the deceleration was seen across most segments on account of weaker rural demand.
According to traders, the stocks have run up sharply this month. Ceat gained 12 per cent so far this month until Monday's close, while Apollo added 8.9 per cent.
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