Tyre Stocks drops to 18% in March amid rising crude oil prices

Tyre-related stocks have declined sharply in March 2026, with losses reaching up to 18 percent. This drop outpaces the 13 percent fall in the Nifty Auto index and the 8.4 percent decrease in the broader Nifty 500 index. JK Tyre has seen the largest decline, down 18 percent. Other major tyre companies, including Balkrishna Industries, TVS Srichakra, Apollo Tyres, and MRF, have also experienced losses between 7 and 11 percent.

Key Highlights

• Tyre stocks fell up to 18 percent in March 2026
• Crude oil prices rose by 50 percent due to geopolitical tensions
• Technical analysis shows continued weakness in CEAT Apollo Tyres and Balkrishna Industries
• Analysts warn of further downside risk up to 24 percent for the sector

Market Performance and Contributing Factors

The tyre industry is highly sensitive to changes in raw material costs, especially natural rubber and crude oil. Recent geopolitical tensions, such as the Iran war, have led to a 50 percent increase in crude and Brent oil prices. This sustained rise in crude oil prices has increased input costs for tyre manufacturers, potentially impacting their financial performance over time.

Analysts warn that continued high crude oil prices could further pressure tyre companies' profit margins. The sector's recent stock performance reflects these concerns, with technical indicators showing ongoing weakness.

Technical Analysis of Leading Tyre Stocks

1. CEAT

​CEAT's current market price stands at Rs 3,545. The stock has followed a bullish trend since June 2022, forming a 'higher peak, higher bottom' pattern. However, it now faces resistance in the Rs 3,800 to Rs 3,900 range and has entered a consolidation phase. Psychological and structural support is found at Rs 3,000. A drop below Rs 2,700 could trigger further selling, representing a potential downside risk of 23.8 percent from current levels.

2. Apollo Tyres

​Apollo Tyres is currently priced at Rs 420. The stock recently broke below a key support level of Rs 470, confirming a downtrend with a 'lower top, lower bottom' structure. Analysts advise caution for short-term traders, suggesting that any rebound toward the previous support-turned-resistance should be approached carefully. Immediate support is at Rs 400, with a possible further decline to Rs 370.

3. Balkrishna Industries

Balkrishna Industries trades at Rs 2,117 and continues to show a clear downward trend, with daily charts displaying 'lower top, lower bottom' formations. Momentum indicators suggest the stock is oversold, which may result in a temporary technical rebound. However, analysts recommend using any recovery as an opportunity to exit long-term positions. If the stock fails to surpass the Rs 2,300 to Rs 2,400 resistance, it may fall further to the Rs 1,900 to Rs 1,800 range.

Outlook and Investor Guidance

Tyre stocks face ongoing challenges due to weak technical signals and rising input costs. With crude oil prices elevated and bearish trends persisting, analysts caution that the sector could see further declines of up to 24 percent. Investors are advised to monitor key support levels and avoid aggressive buying until clear signs of a reversal appear.

Also Read: Tamil Nadu strengthens its position as India’s advanced tyre manufacturing hub

Conclusion

The sharp dip in tyre stocks underscores the direct impact of crude oil fluctuations on the automotive component sector. With input costs expected to remain high in the near term, investors are likely to stay cautious. However, any cooling in oil prices or recovery in demand could bring much-needed relief to tyre manufacturers and restore investor confidence.