Makers of air conditioners and cool beverages and power companies saw an uptick in their stock prices on March 6 as investors expect stronger sales in the upcoming summer season. The stocks have seen a strong surge in recent days, after the Indian Meteorological Department (IMD) said it is expecting above-normal temperatures and heatwave days across India from March onwards, following an unusually warm February.
Amber Enterprises shares jumped over 9 percent to hit an intraday high of Rs 6,350 apiece. The company manufactures complete Room Air Conditioning (RAC) solutions of various specifications and ratings, along with printed circuit boards (PCBs).
Whirlpool, which manufactures fridges among other items, also recorded strong gains. The shares of the company jumped nearly 3 percent to trade at Rs 986 apiece. Shares of air conditioner-maker Voltas, meanwhile, surged nearly 2 percent to trade at Rs 1,411 .50 apiece.
V-guard Industries, which produces invertors for consumer appliances, also saw a surge in its share price. The stock increased nearly 2 percent to trade at Rs 329 per share.
The rise in the summer-linked stocks pushed the Nifty Consumer Durables index into the green territory.
Additionally, the shares of Pepsi-bottler Varun Beverages jumped nearly 3 percent to trade at Rs 489.60. Despite today's gains, the stock is still close to its 52-week low of Rs 419.55 which it had hit earlier this month. Global brokerage Jefferies kept a 'Buy' rating for the stock with a target price of Rs 715.
As summer temperatures rise, so does the need for power. Power stocks saw a strong uptick as a result. Coal India shares surged nearly 4 percent to trade at Rs 383 apiece. The stock has made notable gains after hitting a fresh 52-week low of Rs 349 per share on February 17. ICICI Securities maintained a ‘Buy’ call on the stock, with a target price of Rs 440 per share.
NTPC shares meanwhile jumped over 2 percent to trade at Rs 334 apiece. This stock too has made some recovery after hitting a 52-week low of Rs 293 per share on February 17.
The rise in the stock prices fueled the rally in Nifty Energy, which rose nearly 2 percent to hover around 31,711.
The meteorological department had on February 28 said that the maximum and minimum temperatures are likely to remain above the normal benchmarks during March, except for certain parts. India is also likely to see above-normal heatwave days between March and May.
"Heatwaves pose significant risks to vulnerable populations, including the elderly, children, and those with pre-existing health conditions, leading to heatstroke, dehydration, and strain on infrastructure...Citizens are strongly encouraged to utilize these resources to proactively take personal precautions, such as staying hydrated, avoiding peak sun hours, and seeking cool environments, thereby minimizing the adverse health impacts of heatwaves," IMD said.
Following the Q3FY25 GDP numbers, the Chief Economic Advisor V Anantha Nageswaran was asked about the impact of an unusually warm February on the economy, to which he replied saying the government is taking a number of measures to adapt to the challenges of climate change and global warming.
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