Battery stocks fall despite extension of BCD exemption to capital goods used for Li-ion for batteries

The government has proposed to extend the basic customs duty exemption given to capital goods used for manufacturing Lithium-Ion Cells for batteries, to those used for manufacturing Lithium-Ion Cells for battery energy storage systems too.

The government also proposed to exempt basic customs duty on the import of sodium antimonate for use in the manufacture of solar glass.

Eveready Industries India closed at ₹320.25, down by 16.8 points or 4.9% from its previous closing of ₹335.60 on the BSE. The scrip opened at ₹335.90 and has touched a high and low of ₹335.90 and ₹320.00, respectively.

Exide Industries closed at ₹316.40, down by 4.8 points or 1.4% from its previous closing of ₹321.50 on the BSE. The scrip opened at ₹324.15 and has touched a high and low of ₹326.00 and ₹311.6,5 respectively.

Amara Raja Energy & Mobility iclosed ₹825.10, down by 14.30 points or 1.7 % from its previous closing of ₹838.40 on the BSE. The scrip opened at ₹839.45 and has touched a high and low of ₹853.80 and ₹821.90, respectively.

The Battery companies have witnessed a sharp selloff in the past year as they fell up to 24% in line with the weakness in broader markets. Exide Industries and Amara Raja have capex plans worth ₹5000 crore and ₹9500 crore, respectively, for the next several years. However, the investor sentiment is soured primarily due to weak earnings growth