Ceat which had closed yesterday at Rs.1095.95, today opened in the red and went on to hit a new 52-week low at Rs.1035. MRF, JK Tyre and Apollo Tyres; all are in the red.
Tyres stock slipped into the red after the CCI yesterday announced the imposition of monetary penalty on five major tyre manufacturers for indulging in cartelization.
A penalty of Rs 425.53 crore was levied on Apollo Tyres, Rs 622.09 crore on MRF Ltd, Rs 252.16 crore on CEAT Ltd, Rs 309.95 crore on JK Tyre and Rs 178.33 crore on Birla Tyres.
CCI said that the tyre manufactures had exchanged price-sensitive data amongst the through the platform of their association, namely, Automotive Tyre Manufacturers Association (ATMA), and had taken collective decisions on the prices of tyres.
Apart from the penalties levied on the tyre manufacturers, a penalty of Rs 0.084 crore has been imposed on ATMA.