Saturday, October 24, 2009

Consumer Durable Stocks Sparkle As Diwali Nears

Consumer durable stocks are sparkling with the onset of festival season. The past three weeks have seen durable heavyweights like Titan Industries, Mirc Electronics, Whirlpool of India, Blue Star and Videocon International zoom upto 35 per cent. Titan soared to its new one-year high of Rs 100.7 during the day and many other came close their respective peaks.

Powered by this upsurge in the durable majors, The Stock Exchange, Mumbai’s (BSE) Consumer Durables index has outperformed the broader benchmark index, BSE Sensex during the period. As against the 16.16 per cent surge in BSE CD index, the Sensex has gained about 15 per cent during the three week period since close on September 19.

According to analysts the festival season has added to the fizz. Broking sources add that the topline durable companies are expected to come up with better quarterly results.

‘‘Consumer durable companies have come up with several schemes to boost sales during the festival season. Easy availability of finance has made the products within easy reach of middle-class consumers. Added to this, good monsoons this year is also expected to add the demand specially in rural areas,’’ a Delhi-based NSE broker said.

Tata group major, Titan Industries, rose to cross Rs 100-mark and touched a new 52-week high of Rs 100.7 on October 13. As against Rs 71.05 on September 19, the stock has appreciated 35.54 per cent to close at Rs 96.3 on Monday.

The stock has an 18 per cent weightage in the BSE consumer durables index.

The company has recently entered the lifestyle accessories market. Sales of its jewellery brand, Tanishq, is also expected to rise during the festival season.

Another watches major, Timex, has also surged 31 per cent during the period. Shares of the subsidiary of US-based Timex Watches BV, have closed at Rs 14.33 on Monday as against Rs 10.94 on September 19.

Home-grown television major Mirc Electronics, which owns the Onida brand has also appreciated 19.68 per cent during the period to close at Rs 233.25.

White-goods major, Whirlpool, surged 17.11 per cent to close at Rs 23.95. Samtel Colour and Blue Star have also risen 17 per cent during the period while Videocon International has gained 10 per cent.

Kalyani Sharp, BPL Ltd, Wellwin and Videocon Appliances have also appreciated 6-10 per cent during the period.

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