MRF shares cross Rs 1.5 lakh mark again, hit 52-week high after 5% surge

Tyre companies share price today/MRF share prices today: Shares of tyre companies surged in Tuesday's trade, with MRF Ltd. leading the pack as it scaled a fresh 52-week high of Rs 1,54,238.70, registering a gain of over 6 per cent in intraday deals. The rally added nearly Rs 3,700 crore to MRF’s market capitalisation, which now stands at Rs 64,804.71 crore, marking a 6 per cent rise in investor wealth in just a single session.

The broader move came on the back of healthy August vehicle sales across segments, coupled with growing speculation around possible GST cuts for the auto sector — a combination that has fuelled optimism in related industries like tyres and auto ancillaries.

Auto sales numbers boost sentiment

Two-wheeler majors and commercial vehicle players posted robust year-on-year growth in August. TVS Motors clocked a 30 per cent rise in monthly sales, while Eicher Motors (Royal Enfield) recorded its highest-ever sales. Tata Motors led the commercial vehicle segment with a 10 per cent jump, while Ashok Leyland and Eicher’s VECV arm also reported solid growth.

This uptick in volumes is being interpreted by the market as a trigger for replacement tyre demand, especially as consumer sentiment improves heading into the festive season.

Tyre sector rallies across the board

It wasn’t just MRF making moves. Shares of JK Tyre jumped over 6 per cent to close at Rs 352.90, while Apollo Tyres and Ceat gained around 5 per cent each. The Tyres & Allied index rose by 4.25 per cent, comfortably outperforming the benchmark indices, with the Sensex ending the day lower by 390 points.

GST reforms in focus

Adding to the buzz was the market’s anticipation of a rate cut in the upcoming GST Council meeting. Analysts believe that if the GST rate on automobiles is brought down to 18 per cent, it could shave 3–8 per cent off on-road prices across two-wheelers, passenger cars, and commercial vehicles — potentially unlocking fresh demand across categories.

Brokerages expect tyre makers to benefit both from OEM demand and replacement cycles, especially in rural markets. Apollo Tyres, for instance, has already indicated stronger topline growth in both India and Europe in the second half of FY26.

MRF outpaces market, technicals remain strong

From a technical perspective, MRF is trading comfortably above all major moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day levels — signaling underlying strength. The stock has returned 14.22 per cent over the past year, while the Sensex has declined nearly 3 per cent in the same period.

Having broken past its previous record of Rs 1,53,000 from mid-July, the stock continues to command investor interest.