Consumer Durables Rally On GST Rate Cuts: PG Electroplast, Amber Ent Lead Gains
Shares of major players in the consumer durables and electronics manufacturing services space, such as Voltas, Havells, and Dixon Technologies, have seen their stock prices rise.
The Indian consumer durables sector sectors see a surge stock prices after the government's GST rate cut on key products. The GST Council has slashed the tax on air-conditioning machines, dishwashers, and all televisions, including those above 32 inches, from 28% to 18%.
UBS, for instance, has a direct positive view on the GST changes, noting that the increased affordability will directly benefit companies like Voltas and Havells. Similarly, Macquarie has taken a bullish stance on the sector, initiating an 'outperform' rating on several companies including Kaynes, Avalon, Syrma SGS, Dixon, and Amber, while maintaining a 'neutral' rating on Cyient DLM.
This strong brokerage commentary bets on a consumption boost. Following this, shares of major players in the consumer durables and electronics manufacturing services space, such as Voltas, Havells, and Dixon Technologies, have seen their stock prices rise.
Consumer Durables Players Share Price
The shares of all the players in the consumer durables pack was trading in the green with notable gains. With PG Electroplast leading the lot with over 3.5% gains.
Amber Enterprises closely followed with over 3% gains as well. Dixon Technologies was trading over 1% higher while Blue Star and Voltas were trading nearly 1% higher.
PG Electroplast Share Prices Surges
PG Electroplast stock rose as much as 4.53% during trade so far to Rs 578.2 apiece on the NSE. It was trading 2.39% higher at Rs 566.4 apiece, compared to an 0.64% advance in the benchmark Nifty 50 as of 9:27 a.m.
It has risen 1.30% in the last 12 months and declined 41.53% on a year-to-date basis. The relative strength index was at 51.5.
