The stocks of Electronics Manufacturing Services (EMS) firms in India rose in April 8 trading session amid reports of Apple planning to source more iPhones from India to the US to beat the tariffs imposed on China.
The Cupertino-based tech major is looking to implement the plan as a temporary measure to offset the high cost of imports due to the tariffs imposed on Beijing, the American daily Wall Street Journal reported.
The stocks of the EMS companies jumped nearly 9 percent on hopes of higher orders and margins. PG Electroplast was the top gainer in Nifty Consumer Durables in Tuesday's trading session. The stock gained 8.81 percent to an intraday high of Rs 884.65 per share on the NSE. The counter opened gap-up with a gain of 4.62 percent today, rising after two days of consecutive fall.
Kaynes Technology India, a leading EMS provider, followed closely, rising 6.96 percent to a high of Rs 4,748.25 apiece on the NSE. Stock opened gap-up with a gain of 4.98 percent and rose after three days of consecutive fall.
Washington has announced a 26 percent tariff on India, lower compared to its Asian peers, making it cheaper for Apple and others to export goods from here.
Amber Enterprises and Dixon Technologies rose 6.04 percent and 5.45 percent, respectively. Shares of Syrma SGS Technology Ltd rose 6.45 percent to a high of Rs 444 on the NSE, after opening 5 percent higher. The stock too gained after two days of decline.
On April 2, US President Donald Trump announced a 34 percent tariff on Chinese goods in addition to a 20 percent duty implemented earlier. Beijing retaliated with a 34 percent tariff on all US goods. In response, Trump on April 7 warned of 50 percent more tariffs if Beijing does not back down taking it to total 104 percent, if imposed.
Apple mulls more India-made iPhones for US to avoid China tariffs: Report
In India, Foxconn and Tata group manufacture iPhones for Apple. They will have to expand their supply chain if Apple wants to ship more phones to the US.
Earlier, in a rush to beat a new tax, Apple flew five full planes loaded with iPhones and other gadgets from India to the United States—all in just three days.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
