BSE Consumer Durables index up 2%; Rajesh Exports zooms

Shares of consumer goods companies are trading higher in a weak market on hopes of passage of the Goods and Services Tax (GST) Bill during the present Monsoon session as the consumer durables sector is likely to remain as the biggest beneficiary of GST. CLICK FOR FULL REPORT

The probability of the Constitution (122nd Amendment) Bill pertaining to introduce GST  passing in the ongoing monsoon session has increased with the Rajya Sabha Select Committee endorsing almost all its provisions.

The BSE Consumer Durables Index is outperforming the other sectoral indices up 2% at 11,325. On the other hand, the BSE Sensex is down 0.4% at 28,403.57.

Meanwhile, the decline in gold prices on fears of persistent dollar strength and a possibility of rate increase by the Federal Reserve by the end of the year has spurted a rally in the stocks of Jewellery companies. Rajesh Exports, PC Jeweller and Titan are gaining between 1-10%.

With the announcement of new initiatives by the government to kick start economic growth investors expect that demand for consumer durables will continue. Further, with the ensuing festive season consumer goods such as air-conditioners, washing machines, televisions, jewellery and other home appliances are likely to remain in demand.

Among other companies, Bajaj Electrical, Bajaj Electronics, Symphony, Whirlpool India and Honeywell are trading higher between 2-6%.