APOLLOTYRE

Earlier Pressure Due to Rising Input Costs

🔼 1. Recent Rally on Falling Crude Prices Tyre stocks like MRF Ltd, Apollo Tyres, and CEAT Ltd saw a strong bounce recently. Reason: Sharp decline in crude oil prices Impact: Lower raw material costs (carbon black, synthetic rubber) Margin expansion expectations 👉 This led to short-term bullish momentum across the sector 🔽 2. Earlier Pressure Due to Rising Input Costs Before the rally, tyre stocks corrected significantly. Crude oil + natural rubber prices surged Raw materials form ~70–80% of total cost 👉 Result: Margin compression Weak quarterly outlook ⚠️ 3. High Volatility Continues Stocks like JK Tyre & Industries and Balkrishna Industries remain volatile. Any spike in crude → immediate selling pressure Global geopolitical tensions still influencing prices 📦 4. Demand Outlook Mixed Domestic demand (autos, replacement market) remains stable Export demand slightly inconsistent due to global slowdown Premium segment tyres performing better 📉 5. Technical View (Short Term) Many tyre stocks are trading near resistance zones After sharp rallies, some consolidation or correction possibl