Shares of tyre
makers gained up to 8 per cent on the BSE on report that the government imposes definitive countervailing duty on truck and bus radial tyre
imports from China.
Reacting to the news, the stocks of TVS Srichakra
rallied 8 per cent to Rs 1,963, followed by JK Tyre, which surged 5 per cent at Rs 80, Ceat
was up 4 per cent at Rs 939, followed by Balkrishna Industries, up 3 per cent at Rs 766 and MRF
by 2 per cent at Rs 56,099 on the BSE. In comparison, the S&P BSE Sensex was up 0.62 per cent at 39,364 points at 02:16 pm.
The government has imposed countervailing duty on new pneumatic radial tyres, which are imported from China, for five years. These tyres are above 16 inches and normally used in buses, lorries/trucks.
The notification by the Ministry of Finance said the "imposition of definitive countervailing duty is required to offset subsidisation and injury" and that it has recommended the imposition of definitive countervailing duty on the imports of the subject goods from China.
Thus far in the current calendar year 2019, most of the tyre
stocks had underperformed the market by falling in the range of 18 per cent to 31 per cent, as compared to 8.5 per cent rise in the benchmark index till Monday.