Shares of air conditioner and refrigerator-related companies, including Voltas and Havells India, rose in early trade on March 19 after the government exempted key components from mandatory BIS certification, easing supply concerns ahead of an expected harsh summer.
The Department for Promotion of Industry and Internal Trade (DPIIT) has removed the BIS certification requirement for grooved copper tubes and air conditioning compressors of 2 tonnes and above, including those imported from China, according to report on Economic Times.
The decision comes in response to sectoral demands and aims to prevent potential shortages as temperatures soar.
The exemption follows reports of an unusually warm summer and hints from the government about policy measures to address climate change-related challenges.
Last month, Chief Economic Advisor V Anantha Nageswaran, responding to a question on the economic impact of an exceptionally warm February, said the government was taking steps to adapt to rising temperatures and mitigate their effects.
Following the announcement, shares of Voltas surged 3.97 percent to an intraday high of Rs 1,525.75 on the NSE, making it the top gainer in the Nifty Consumer Durables index, which rose nearly 1 percent.
Havells India gained 2.47 percent, while Blue Star climbed 3 percent. Godrej Industries also advanced 1.01 percent to Rs 1,144.45.
Amber Enterprises, which manufactures room air conditioning (RAC) solutions and printed circuit boards (PCBs), saw its shares rise 2.42 percent to an intraday high of Rs 6,794. Whirlpool, known for its refrigerators and other appliances, gained 2.34 percent to Rs 973 per share.
The rally in summer-related stocks comes amid the India Meteorological Department’s (IMD) recent forecast of above-normal temperatures and increased heatwave days from March to May.
On February 28, the IMD said maximum and minimum temperatures were likely to remain above average across most parts of the country, barring some exceptions.
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