Shares of tyre companies traded negative in the early trade on the BSE on Thursday, a day after Competition Commission of India (CCI) imposed a penalty of approximately Rs 1,788 crore on five tyre companies.  

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Shares of Apollo tyres, CEAT, MRF, JK tyre and Birla tyres corrected up to 3 per cent on Thursday after CCI imposed fines on them. Ceat stock even traded on 52-week low value of Rs 1035per share on the BSE.  

See Zee Business Live TV Streaming Below:

At 10.45 am, shares of Apollo tyres declined by 0.95% to Rs 223.35 apiece on the BSE. Similarly, shares of Ceat, which touched 52-week low on Thursday, were trading lower by 0.29% to Rs 1092.75 per share at the same time. MRF, JK Tyre and Birla tyres corrected 0.15%, 1.87% and 2.88% to Rs 71415, Rs 133.85 and Rs 25.25 per share on the BSE after CCI imposed penalties on these companies. 

The CCI had imposed a penalty on Apollo Tyre, Ceat, MRF, JK Tyre and Birla Tyres on Wednesday for "indulging in cartelisation by acting in concert to increase the prices of cross ply/bias tyres variants sold by each of them in the replacement market and to limit and control production and supply in the said market." 

"The tyre manufactures had exchanged price-sensitive data amongst them through the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the prices of tyres," the fair trade regulator had said while imposing fine.  

CCI has imposed a penalty of Rs 425.53 crore on Apollo Tyre. MRF has been slapped with a penalty of Rs 622.09 crore. Penalties of Rs 252.16 crore and Rs 309.95 crore and Rs 178.33 crore have been imposed on CEAT, JK Tyre and Birla Tyres respectively.