Whirlpool, Kalyan Jewellers, Dixon Tech, others surge up to 8%; how did consumer durable stocks move today?

Consumer durable stocks like Whirlpool, Kalyan Jewellers, Voltas, Blue Star, Amber Enterprises, and Dixon Technologies, among others, rallied during the trading session on Thursday, August 27, as investors focused on pre-festive season demand and falling metal prices in the market.

NSE data showed that heavyweight stocks powered the sectoral benchmark index, Nifty Consumer Durable, up 1.27% or 516 points to touch an intraday high of 40,964.55 points on Thursday’s market, in comparison to 40,448.40 points at the previous equity market close.

As of the afternoon market hours, the Nifty Consumer Durables index was trading 1.18% higher at 40,927.50 points during the trading session on August 27.

Investors were focused on the pre-festive season demand and higher revenue potential sentiment for the sector in the upcoming quarter results, as domestic customers will now move towards more purchases during the gifting season of the year.

India has already started witnessing its festive season demand, celebrating Onam on Wednesday, August 26, and upcoming Raksha Bandhan on Friday, August 28, during which customers will likely purchase more products, in turn spending more on company products.

Whirlpool, LG Electronics India, Kalyan Jewellers, Voltas, Blue Star, Amber Enterprises, PG Electroplast, Titan, and Dixon Technologies are all companies which make home appliances, jewellery, air conditioners, among other items which are purchased by consumers during the festive season.

Consumer durable stocks in focus today

Lower input cost potential

While several companies were hit by the surging input costs in the Q1 earnings season, the recent decline in commodity metal and crude oil prices in the global market has now improved hopes of strong quarterly performance amid the festive season momentum.

These consumer durable companies are dependent on the impact of input costs, which can improve or weigh down quarterly financial performance with the rise or fall of the cost of raw materials in a period.

Investing.com data showed that prices of key earth minerals like Copper, Zinc, Aluminium, among others, declined on August 27, amid a sudden rise of the benchmark US dollar in the market. However, concerns remain on the supply front as inventories remain at risk in the global market.

Data further showed that global copper prices have dropped 0.76% to $6.5488 per 25,000 pounds during the trading session on Thursday, compared to $6.5995 per 25,000 pounds at the previous commodity market close.

Zinc prices lost over 1% during the intraday trading session on Thursday to $3,845.05 per 25 metric tonnes, from $3,884.55 per 25 metric tonnes at the previous market close.

The exchange data also showed that Aluminium prices in the global market declined 0.70% to a low of $3,202 per 25 tonnes during the trading session on August 27, in comparison to $3,224.75 per 25 tonnes at the previous market close.