Revival of monsoon has brought cheer back to consumer durable stocks. Stocks like Titan Industries, Videocon, Blue Star, BPL and Samtel Color have shot up 18-58 per cent in the past two months after remaining flat in June.
The sharp surge has taken the BSE’s Consumer Durable Index up by 28 per cent since June 25 as against 8 per cent gains in the benchmark BSE Sensex during the two-month period.
On Friday alone, the Consumer Durable Index shot up over 4 per cent or 42.77 points even as the Sensex dropped 0.36 per cent or 18.44 points. Whirlpool India zoomed 15.85 per cent, while Titan and Videocon International surged 5.45 per cent and 6.98 per cent respectively in a single day. Samtel Color, Su-Raj Diamonds and BPL also rose 2.5-3.5 per cent during the day.
According to market sources, the revial of monsoon may help for the next few quarters. “Moreover, the surge witnessed in consumer durable stocks is surprising considering the fact that there is an upward pressure on interest rates. Usually, a rise in rates affects the topline of consumer durable manufacturers. In addition, the ongoing truckers strike has also not affected these stocks in a big way. While, automobile and metal stocks, were severely hit on Friday,” a Delhi-based equity analyst said.
Titan Industries closed the week at Rs 151 as against Rs 101.3 on June 25, gaining 49 per cent during the 2-month period. Videocon International also witnessed a 58 per cent spurt to close at Rs 48.3 on Friday as against Rs 30.6 on June 25.
The duo have a 45 per cent weightage in the BSE CD Index. Blue Star, which gained 18 per cent during the period to close at Rs 185.05 on August 27, has a high weightage of 17.5 per cent in the sectoral index.
Jewellery stocks, Goldiam International and Su-Raj Diamonds, part of the BSE CD Index, have risen 34 per cent and 21 per cent respectively during the period.