The post Tyre Stocks Surge Ahead Of Markets On Lower Costs And Auto Demand Boost appeared first on The Edge Media.
]]>Over the past six months, the average return generated by major listed players such as MRF, JK Tyre, CEAT and Apollo Tyres stood at around 18 per cent, sharply outperforming benchmark indices that posted only low single-digit gains during the same period.
A key driver behind this rally has been margin expansion led by declining input costs, with early evidence visible in the September quarter earnings. Operating profit margins of major Indian tyre companies rose sequentially by 130 to 240 basis points, while year-on-year improvement ranged between 56 and 322 basis points. On average, margins expanded by nearly 190 basis points across the four companies, marking the strongest quarterly margin performance in at least five quarters.
Raw material costs as a share of sales declined during the quarter and this trend is expected to continue into the December quarter. Natural rubber prices have dropped by about 10 per cent since early September, while crude oil prices have declined by over 13 per cent. In addition to natural rubber, key inputs such as synthetic rubber, nylon tyre cord and carbon black, which are linked to crude derivatives, are also expected to witness softer pricing, further supporting profitability.
Demand momentum from the automobile sector has added another layer of support. The auto industry recorded strong performance in November 2025 across passenger vehicles, two-wheelers, commercial vehicles and tractors. Most large automakers reported double-digit year-on-year growth, driven by festive demand spillover, improved affordability following price cuts, positive rural sentiment and sustained export demand.
Domestic volume growth was led by medium and heavy commercial vehicles and tractors, which expanded by over 30 per cent year-on-year. Light commercial vehicles, two-wheelers and passenger vehicles also posted healthy growth in the range of 18 to 23 per cent, reinforcing the positive demand outlook for tyres.
Against this backdrop, brokerage firms remain optimistic about the sector. Analysts at Anand Rathi Research expect MRF to record steady growth in revenue, operating profit and net profit over the FY25 to FY28 period, supported by strong replacement demand, export growth and market share gains. Margin improvement is expected to be driven by lower rubber prices, softer crude-linked inputs and better realisations from an improved product mix. The brokerage has maintained a buy rating on the stock with a target price of Rs 1,70,000.
Nirmal Bang Research continues to favour CEAT, citing its leadership in the two-wheeler segment, expanding presence in premium categories such as SUVs and higher-capacity motorcycles and a growing international footprint following the Camso acquisition. Analysts believe favourable GST reforms, rising electric vehicle adoption and premiumisation trends will support steady growth in the domestic tyre market. The stock carries a buy rating with a target price of Rs 4,545.
ICICI Direct Research has also retained a positive view on Apollo Tyres, highlighting the benefits of GST 2.0 reforms, expected recovery in margins and improving auto volumes. Strong cash flow generation, disciplined capital expenditure, ongoing debt reduction and healthy return ratios further strengthen the investment case, with a target price of Rs 565.
Geojit Research expects the Indian tyre industry to grow at 7 to 8 per cent in FY26, led by robust replacement demand. It points to market penetration initiatives, digitalisation and operational efficiency improvements as long-term growth drivers for JK Tyre, while cautioning that global uncertainties related to US tariffs and geopolitical tensions remain key risks. The brokerage has maintained a hold rating on the stock with a target price of Rs 391.
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]]>read also: Mass Flight Cancellations by IndiGo Trigger Chaos at Hyderabad Airport
The company’s stock price has shed more than 7% on the BSE during the last four trading sessions. On Friday, the share price slipped by 1.22% to close at Rs 5,371.30 after touching an intraday low of Rs 5,266. On the NSE, the stock ended the day 1.27% lower at Rs 5,367.50, extending its total four-day decline to over 7%.
Since December 1, InterGlobe Aviation’s market capitalisation has dropped by roughly Rs 16,190 crore, reducing its valuation to around Rs 2.07 lakh crore.
The wider aviation network in India remained disrupted for a fourth consecutive day on Friday as IndiGo, which accounts for nearly two-thirds of domestic air traffic, cancelled more than one thousand flights. All departures from New Delhi were halted at one point, leaving passengers without clear rebooking options and causing significant missed events and lost connections.
The turmoil was triggered by IndiGo’s inability to adequately prepare for new pilot duty-time norms. These rules increase the weekly rest requirement for pilots from 36 to 48 hours and restrict 9 times landings to 2 per week instead of 6. IndiGo acknowledged that the large-scale cancellations were the result of planning errors and misjudgment.
Chief Executive Officer Pieter Elbers stated on Friday that the airline expects operations to stabilise between December 10 and December 15.
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]]>The post Key Factors Influencing the Stock Market This Week appeared first on The Edge Media.
]]>Domestic Economic Indicators
This week is crucial for the Indian market as several key macroeconomic data points are due for release. Attention will be centered on India’s Consumer Price Index (CPI) and Wholesale Price Index (WPI) figures, which will help assess the inflation pattern and potential policy directions.
Corporate Earnings to Watch
Quarterly results from major companies such as ONGC, Bajaj Finserv, Asian Paints, Tata Steel, and Oil India will provide important signals for various sectors. Market participants will be closely monitoring these earnings to gauge the overall corporate performance and industry outlook.
Global and Currency Influences
Movements in the rupee against the US dollar and fluctuations in Brent crude prices will be significant in determining investor confidence. These global factors often influence domestic market sentiment and portfolio decisions.
Expert Insights
According to Ponmudi R, CEO of Enrich Money, both domestic and international economic conditions will shape investor mood this week. The release of October’s CPI inflation data is expected to offer more clarity on the future course of interest rates.
Globally, the ongoing US government shutdown has paused the release of critical economic reports, creating uncertainty among investors and policymakers trying to evaluate the actual condition of the US economy.
Recent Market Performance
In the previous, holiday-shortened week, the BSE Sensex declined by 722.43 points, while the NSE Nifty dropped by 229.8 points, reflecting a weak market sentiment.
Outlook Ahead
Vinod Nair, Head of Research at Geojit Investments, noted that the market’s next direction will depend on upcoming inflation figures, foreign institutional investor (FII) flows, developments in the US government situation, and the progress of trade negotiations among the US, India, and China.
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]]>The post Sensex and Nifty End Flat as Auto and Banking Stocks Provide Mild Support appeared first on The Edge Media.
]]>The Sensex moved in a narrow range during the session touching an intraday high of 84127 and a low of 83609 as traders stayed cautious amid lack of new domestic triggers and continued selling by foreign investors. Market analysts said that profit booking at higher levels and sustained foreign fund outflows kept the overall sentiment subdued
Mahindra and Mahindra emerged as the top performer on the Sensex gaining about one point seven percent after reporting steady sales in October. Tata Motors Passenger Vehicles also advanced one point six nine percent while State Bank of India Bharti Airtel and Kotak Mahindra Bank recorded modest gains
On the other hand Maruti Suzuki saw the sharpest fall declining by more than three percent. Other laggards included ITC Tata Consultancy Services Larsen and Toubro Bharat Electronics and Titan which all ended the session in negative territory
Data from the exchanges showed that Foreign Institutional Investors sold equities worth about six thousand seven hundred crore rupees on Friday whereas Domestic Institutional Investors turned net buyers with purchases of over seven thousand crore rupees. This buying helped limit the downside in the broader market
Elsewhere in Asia major indices such as South Korea’s Kospi China’s Shanghai Composite and Hong Kong’s Hang Seng closed higher reflecting a mixed global trend. Meanwhile global crude oil benchmark Brent slipped slightly by 0.14 percent to trade near sixty four dollars per barrel
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