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    Prefer JK Tyre, Apollo Tyres among tyre names: Neeraj Deewan

    Synopsis

    There would definitely be some selling pressure in the short run, but falling rubber prices and reviving demand make these stocks 'buy on dips', says Deewan.

    In a chat with ET Now, Neeraj Deewan, Director, Quantum Securities, shares his view on tyre stocks.

    ET Now: Tyre companies would observe some tangible benefits of falling rubber prices in the fourth quarter results. What is your call on this space? Any particular stock that you would like to recommend?

    Neeraj Deewan: We have JK Tyre and Apollo Tyres under our coverage. Both of these stocks can be looked at from a long-term perspective.

    There would definitely be some selling pressure in the short run. One needs to take a call on when these tyre stocks make a base, and only then buy them.
    Having said that, rubber prices are still quoting low and these tyre makers would continue to be benefited from the fall in input cust. In addition, the revival in demand from light commercial vehicle (LCV) segment, albeit gradually, over the next six to nine months, you lead to a material revival in the sector.

    Hence. we continue to remain bullish on JK Tyre and Apollo Tyres. That said, you have to go through this correction and buy them when they make a base, before they resume their uptrend.




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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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