JK Tyre rallies 13% after stock split

Volume soared after the stock split. So far, over 17.70 lakh shares have exchanged hands on BSE, compared with a two-week average of 3.77 lakh shares. 

One of the key factors for the recent sharp rise in Tyre stocks has been a sharp fall in crude oil prices. The oil prices are down 44 per cent year-to-date and further decline is expected in coming months.

According to a report by Macquarie, changes in raw material cost show 80 per cent correlation with changes in crude oil prices. A 40 per cent drop in oil prices could expand Ebitda margins of companies by nearly 240 basis points.

Shares of JK TyreBSE 9.38 % & Industries jumped as much as 13 per cent in trade on Friday. At IST 1 pm, the scrip was quoting at Rs 157.45 on BSE, up 12.79 per cent over its previous close of Rs 139.60. Huge demand was seen for the stock after it was split to face value of Rs 2 from Rs 10 in the Thursday's trading session.