Voltas, Blue Star, Havells, Whirlpool rally as IMD predicts above-normal temperature in April-June

Consumer durable stocks witnessed substantial gains today largely led by white goods manufacturers of AC’s, coolers and refrigerators as the country’s official weather forecaster, India Meteorological Department (IMD), predicted a hotter summer this year.

Stocks of companies manufacturing and selling coolers, air conditioners (ACs), fans and refrigerators jumped as IMD warned of above-normal temperatures in the April-June period.

At 12:15 pm, the Nifty Consumer Durables Index was up 1.9% at 33,141. The sectoral index is on the rise for a third consecutive week after the onset of the summer season, primarily driven by manufacturers of white goods products like ACs, refrigerators, coolers, etc.

The top gainer amongst the white goods manufacturers in the index was Crompton Greaves Consumer Electricals which rose 3.8% to ₹280.7. Among other gainers were shares of Voltas that jumped 3.6% to ₹1,192 apiece, Havells India that gained 2.3% to ₹1,547 apiece and Blue Star that was up 2.5% at ₹1,309 apiece.

Whirlpool of India rose 1.4% to ₹1,268 per share, while Amber Enterprises India inched up 1.2% to ₹3,733. V-Guard Industries was also up 1% to ₹337.45.

Also read: Hot Summer cool stocks: Consumer durables, power, hotels among key sectors to watch

In its seasonal outlook released on Monday, April 1, IMD said that Rajasthan, Gujarat, Maharashtra, Odisha, North Karnataka, Andhra Pradesh and Telangana are likely to experience an increased number of intense heatwaves this year.

There is a high probability of heatwave episodes lasting as long as 10 to 20 days against a normal of 4 to 8 days during the upcoming three months, the weather forecaster mentioned.

Demand for cooling products like air conditioners (ACs), fans, refrigerators and coolers is likely to shoot up during this period, which could benefit consumer durables makers.

The consumer durable industry expects double-digit revenue growth in FY25, led by product premiumisation and growing consumer preference for branded products over local and generic ones.

Meanwhile, Jammu and Kashmir, Himachal Pradesh, northern Odisha, adjoining Gangetic West Bengal and eastern India regions could experience normal or below normal temperatures, IMD added.

To recall, the summer season was a near washout for the consumer durable industry last year as sales had dropped 25-30% due to heavy unseasonal rains during April-May. However, the industry remains optimistic this year and looks forward to the summer season for higher sales and revenue.