Dixon Tech, Kaynes, other EMS shares gain up to 7% on India-US trade deal announcement

Shares rise in trade.

• EMS stocks rose up to 7% after US-India trade deal cut tariffs to 18%.
• Lower US tariffs to boost EMS companies' margins.
• India-US deal to boost electronics, semiconductor, and tech sectors.

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Shares of electronics manufacturing services (EMS) companies Dixon Technologies, Syrma SGS Technology and Kaynes Technology India rose between 5 percent and 7 percent in Tuesday’s trade after US President Donald Trump announced a trade deal with India, lowering tariffs on Indian goods to 18 percent.

The announcement boosted sentiment across EMS stocks on expectations of improved export prospects to the US.

According to ICICI Securities, lower US tariffs could benefit EMS exporters such as Dixon Technologies, Kaynes Technology and Syrma SGS by enhancing export competitiveness and supporting margins.

India Electronics and Semiconductor Association (IESA) President Ashok Chandak said the India-US trade deal could act as a major catalyst for India’s electronics, semiconductor and technology ecosystem.

The agreement is expected to improve market access and facilitate smoother flow of capital equipment and advanced technologies, he said. Chandak added that, when complemented by initiatives such as iCET and TRUST, the deal could help strengthen trusted supply chains and deepen technology collaboration between the two countries.

He further said the vision of USD 500 billion in bilateral trade could translate into over USD 100 billion in trade for the electronics and semiconductor sector.

The development comes in the backdrop of Finance Minister Nirmala Sitharaman’s Union Budget proposals. On February 1, Sitharaman announced an increase in the outlay for electronics manufacturing to Rs 40,000 crore for the 2026-27 financial year.

Presenting the Union Budget for 2026-27, she also said that high-tech tool rooms would be set up at two locations to support capital goods manufacturing.

(Reuters Inputs)

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