Tyre stocks stand to gain from falling crude prices; prefer Ceat: Deepak Shenoy

In a chat with ET Now, Deepak Shenoy, Founder, Capital Mind, talks about stocks and sectors which would be the biggest beneficiaries of the ongoing steep fall in crude prices.

ET Now: Give me a stock which you would like to buy which to your mind will be the biggest beneficiary of the commodity drop?
Deepak Shenoy: The primary guys who may get impacted by the falling crude prices are oil refiners and oil market companies such as HPCL. But they are seeing overhang on taxation front, which I really do not like. Plastics and the tyre manufacturers will benefit. If we continue to see a positive uptick in the auto replacement cycle, then we may surely see tyre stocks performing. So tyre manufacturers stand to gain substantially. Ceat is one tyre stock that really looks attractive. Other attractive names include Apollo Tyres and MRF. They may look expensive, but they might actually outperform if crude prices continue to stay low. Hopefully, they can overcome the competition from Chinese tyres if they reduce prices.