Tyre stocks experienced significant gains on Thursday as crude oil prices extended their recent decline, with Brent crude falling to $70.79 per barrel after dropping 1.09% as reported by Moneycontrol. According to reports from Business Standard, Goodyear India emerged as the top performer, surging 7.2% to ₹811 on the National Stock Exchange (NSE) around 10 AM. CEAT followed with a 4% gain at ₹3,779, while Tolins Tyres shares jumped 6% to ₹110. The rally was triggered by oil prices falling to their lowest levels in more than four months after Qatar reported positive progress in indirect talks between Iran and the US focused on the Strait of Hormuz. As per Moneycontrol, CEAT emerged as one of the biggest gainers, jumping 4.4%, while JK Tyre & Industries rose over 3% and Apollo Tyres gained more than 2%. The positive sentiment extended across major tyre manufacturers, with JK Tyre and TVS Srichakra gaining more than 3% each to trade at ₹411 and ₹4,320 respectively.
Brent crude fell 1.1% to $70.80 per barrel, while US West Texas Intermediate (WTI) dropped 1.2% to $67.74 as reported by Moneycontrol. The decline follows a sharp rally seen during the recent Israel-Iran conflict, when concerns over possible disruptions to shipping through the Strait of Hormuz pushed oil prices higher. With geopolitical tensions easing and tanker traffic normalising, the risk premium built into crude prices has largely unwound. Tanker traffic through the strait has started to recover, with US Vice President JD Vance noting that oil flows through the waterway had returned to pre-war levels. Adding to supply concerns, sources told Reuters that OPEC+ oil-producing countries will likely agree to a further hike in their output targets from August when they meet on Sunday. Since India imports most of its crude oil, lower prices reduce import costs, ease inflation concerns and improve the country's fiscal outlook, boosting investor confidence across sectors.
The positive sentiment extended beyond tyre stocks to other crude-sensitive sectors, with the Sensex rising 474 points to 77,330 and Nifty crossing 24,100 during the session. As per Moneycontrol, among state-run oil marketing companies (OMCs), BPCL advanced 2.4%, HPCL climbed 2.4%, and Indian Oil Corporation (IOC) gained about 2%. Airline operator InterGlobe Aviation (IndiGo) traded higher by 0.65%, while paint manufacturers Asian Paints, Berger Paints, and Kansai Nerolac also posted modest gains. In contrast, upstream oil producers Oil India and ONGC, whose earnings are linked to crude prices, traded in the red, falling 0.9% and 0.2% respectively. The gains in crude-sensitive counters came amid a broadly positive market, with the Nifty Midcap 100 advancing 0.52% and Nifty Smallcap climbing 0.69%. Domestic Institutional Investors (DIIs) have continued buying and have offset limited foreign selling, with heavy buying in banking and financial stocks such as SBI and Reliance helping the market stay firm.
Tech bellwether Infosys emerged as the top gainer in the Nifty 50 index, registering a sharp intraday jump of over 5% as reported by Moneycontrol. The IT sector reversed its recent weakness, with the Nifty IT index emerging as a major sector leader in early trade, staging a sharp recovery. Tech heavyweights Infosys, HCL Technologies, and Tech Mahindra topped the early gainer charts, capitalizing on institutional value-buying. The reversal came despite overnight selling in US semiconductor giants, with Micron and SanDisk both down over 10%, dragging tech-heavy indices in Japan and South Korea down in early trade. Better-than-expected June auto sales have lifted sentiment in automobile stocks as companies reported healthy deliveries and continued to expand production, while FMCG stocks are also attracting buyers on hopes of stronger rural demand in the coming months. The steady performance of these sectors provided strong support to both the Sensex and Nifty, with the Nifty moving back above the key 24,000 mark.
According to Ponmudi R, CEO of Enrich Money, as reported by Business Standard, "Crude oil has erased the gains recorded during the US-Iran conflict as concerns over supply disruptions have eased." He noted that sectors with high fuel, energy, and crude-linked raw material costs are likely to benefit most from easing oil prices. Tyre companies could see margin improvement due to lower input and transportation costs, with the rally primarily driven by expectations of margin expansion rather than sudden demand improvement. Among listed players, Ponmudi favours MRF, Apollo Tyres, and CEAT due to their strong domestic franchise and improving margin profile, while JK Tyre could offer higher operating leverage for investors willing to take higher risk. The gains in crude-sensitive counters reflect the market's recognition that lower crude prices are generally positive for OMCs because they reduce working capital requirements and ease pressure on marketing margins.
