Shares of air conditioner manufacturers witnessed surge in buying activities on Wednesday, with stock price of Voltas, Blue Star, Symphony, and Johnson Controls-Hitachi Air Conditioning India surging up to 10% amid hope of high demand for cooling solutions this summer. According to the Indian Meteorological Department (IMD), March will be hotter than usual, which is likely to push demand for summer-related home appliances. Investors expect that rising mercury levels will lead to early demand for air conditioner products.
Several parts of India have experienced sudden jump in temperature in the last two weeks, which raised concerns about how hot this summer could be. Temperatures in Punjab, Haryana, Chandigarh, and Delhi reached up to 28-33 degrees Celsius during 18-20 February, which was above normal by 5-9 degrees Celsius, according to IMD. This was attributed to the absence of any active western disturbance in February and dry spell prevailing over the plains and subdued rainfall or snowfall over hills. In early predictions, meteorologists have warned there will be return of El Nino in the later part of 2023, which may lead to extreme weather around the world.
Reacting to the weather report, shares of Johnson Controls gained as much as 9.8% to ₹1,315 on the BSE, while Voltas stock price climbed 3.7% to ₹927.75 in intraday trade so far. Similarly, Blue Star shares rose 4.5% to ₹1,476.45 and Symphony soared 3.76% to ₹1,151 on the BSE. Among others, Crompton Greaves Consumer Electricals, Lloyds, Havells Amber Enterprises, and Sharp India were down, in sync with the broader market, falling up 2%.
In contrast, the broader market witnessed sharp selling pressure with BSE Sensex falling as much as 634 points, or 1%, to 60,039 levels, led by Bajaj Finance, NTPC, Bajaj Finserv, Reliance Industries, and HDFC Bank. All 30 shares in the Sensex pack, barring ITC, were trading in red, while all sectoral indices were also flashing in red, led by heathcare and FMCG space.
As per the exchange data, Johnson Controls shares have delivered a negative return of 4% in a year, while it has jumped 13% in the six-month period. In the last one month, the stock has fallen 6%, while it slipped 4% in a week.
Meanwhile, Voltas shares have plunged 26% in the last 12 months and 6% in the six-month period. However, the fast moving electric goods (FMEG) stock has rebounded 18% in a month and 6.5% in a week.
Blue Star shares have risen 37% in a year and 38% in the past six months. It added 18% in a month and 6% in a week.
Among others, Symphony stock price has delivered 17% returns to its shareholders in a year and 18% in a six month period. It gained 17% in a month and 8% in a week time.
