Almost all tyre stocks are up today, with Ceat currently up 6.7% at Rs.251.95 and this is after having hit a new 52-week high at Rs.256.70. JK Tyre is up almost 4% and it too hit a new 52-week high today at Rs.143. MRF remains stable and Apollo is down in the red.

This sudden spike up in tyre stocks is on account of a sharp fall in spot price of natural of rubber prices. Spot natural rubber at Kochi market  is down 8% since the end of September this year and 20% from its peak in July this year. And this, many analysts expect that will lead to much better margins in Q4 of current fiscal and FY15. More than half of the sales earned is spent on procuring natural rubber thus any price fall is bound to lead to better earnings.