Beat The Heat! Dixon, Voltas, Blue Star, Consumer Durables Stocks Rise And The Reason Is This Big Prediction

Consumer durables stocks witnessed a frenzy of buying on stock exchanges with heavyweights of the segment like Dixon Technologies and Voltas hitting new 52-week highs. The reason for buying these durable goods stocks is the prediction of a hotter summer. IMD announced that this hot weather for April to June 2024 will be above normal.

Above-normal summer season means that increase in demand for consumer-related products like ACs, refrigerators, coolers, and even home appliances. That is why, investors parked in their money immediately in big consumer durable stocks to beat the heat in their pockets.

Nifty Consumer Durables index ended at 33,122.65, up by 604.95 points or 1.9%. During the trading hours of April 2nd, the index also touched a new all-time high of 33,177.80 despite the broader market tone being cautious.

It was a massive rally in consumer durable stocks that offset the heavy loads of bearish trend in Sensex and Nifty as they both ended marginally lower.

Under the Nifty Consumer Durables index, Dixon stock was the top gainer up by 4.3%, followed by Crompton Greaves and Tata Group-backed Voltas which gained by 3.8% and 3.4% respectively. Dixon and Voltas also rallied to hit new lifetime highs of Rs 7,950 and Rs 1,214.80 respectively.

To beat the heat and attract customers, Crompton also announced the launch of a new product SuperBreeze Optimus in 1200 MM sweep size under ECO Deco category.

Kajaria Ceramics were also up by 3.2%. Further, Blue Star, Whirlpool, Amber Enterprises, and Havells India soared between 2% to 2.5%. Meanwhile, Century Ply zoomed by 1.9%, and Rajesh Exports climbed 1.2%. Other stocks like Kalyan Jewellers, V-Guard, Bata India, and Titan Company advanced between 0.4% to 1%.

Cera Sanitaryware was the only laggard, however, the drop was marginal.

On April 1, the India Meteorological Department (IMD) issued an updated Seasonal outlook for the hot weather season (April to June) 2024 and a Monthly outlook for April 2024 for rainfall and temperature at Mahika Hall, Prithvi Bhawan, New Delhi.

IMD said that during the upcoming hot weather season (April to June), above Normal maximum Temperatures are likely over most parts of the country, especially with high probability over central India and western peninsular India.

While addressing the media, Dr Mrutyunjay Mohapatra, DG, IMD said "Normal to below normal maximum temperatures are likely over some parts of western Himalayan region, NE states and north Odisha during this hot weather season".

During the 2024 hot weather season (April to June (AMJ)), above-normal maximum temperatures are likely over most parts of the country, except some parts of east and northeast India and pockets of northwest India where normal to below-normal maximum temperatures are likely, as per IMD.

For April 2024, IMD said, above-normal maximum temperatures are likely over most parts of the country. However, isolated pockets of east, northeast and northwest India are likely to experience normal to below-normal maximum temperatures.

It further added that normal monthly minimum temperatures are most likely over most parts of India, except one or two pockets of northwest and northeast India where normal to below-normal minimum temperatures are likely during April 2024.

During the April May June hot weather season, IMD believes that above-normal heatwave days are likely to occur over most parts of the south peninsula, central India, east India and plains of northwest India.

Talking about the impact of Heat Wave from April to June & April 2024, DG, IMD said during heatwaves elevated temperatures pose significant risks, especially for vulnerable populations like the elderly, children, and those with pre-existing health conditions, who are more susceptible to heat-related illnesses such as heat exhaustion and heatstroke. He said prolonged periods of extreme heat can lead to dehydration and strain infrastructure such as power grids and transportation systems. He added in order to address these challenges, it is imperative for authorities to take proactive measures like providing access to cooling centers, issuing heat advisories, and implementing strategies to alleviate urban heat island effects in affected areas. Efforts are also needed for safeguarding public health and minimizing the adverse impacts of heat waves.

He also informed the media that preparedness measures are being taken by NDMA, Ministry of Jal Shakti, Ministry of Agriculture, Ministry of Health and Ministry of Power to mitigate the effects of the Heat Wave.