Blue Star, Voltas shares rally amid delayed monsoon
What's the story
Shares of air conditioner manufacturers and related companies have witnessed a jump of up to 5% on Wednesday. The spike comes amid concerns over a delay in the southwest monsoon's progress, which is likely to keep the demand for cooling appliances strong. India is currently staring at a 35% rainfall deficit, with the southwest monsoon lagging after its initial onset.
Market response
Favorable environment for sustained demand for cooling products
The monsoon reached Kerala on June 4, three days later than its usual arrival date of June 1. It has been delayed by over a week in reaching Mumbai. The late arrival and lack of widespread rainfall have created a favorable environment for sustained demand for air conditioners and cooling products, resulting in increased buying interest in shares of companies operating in this sector.
Stock performance
Voltas, Blue Star's shares jump
Tata Group-backed Voltas's shares surged by around 4%. Meanwhile, Blue Star's shares jumped by as much as 5% to ₹1,701.60 per share on the NSE. Blue Star is India's second-largest domestic player in the room air-conditioner market. Contract manufacturers and component suppliers associated with the cooling appliance segment also witnessed a similar trend of buying interest in their stocks. Havells India, PG Electroplast, and Crompton Greaves Consumer Electricals' shares gained 1.92%, 3.75%, and 4%, respectively.