IFB Industries, Voltas, and Blue Star shares all went up on Wednesday as air-conditioner makers rallied following a heat wave alert issued by IMD.
What Happened? The Indian Meteorological Department (IMD) recently issued its first heat wave alert of the year as temperatures across the country appear to be on the rise a little ahead of the schedule.
In its latest forecast, IMD has alerted of a rise in temperature in southwest Rajasthan, pockets of Gujarat, Jammu, Himachal, and Uttarakhand for the next two days.
The forecast falls in line with a World Bank report from December 2022 which predicted that more than 16 crore Indians will face adverse effects of heatwaves from 2030.
The heatwaves will also shoot up the need for cooling, increasing the demand for air conditioners and other equipment, said the report at the time and investors appear to have gotten their first investment cue with IMD’s newest forecast.
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Voltas, Blue Star, and IFB Industries shares all saw trade volumes surge on Wednesday, with Trendlyne figures suggesting an average surge of 5 times the usual volume.
Mumbai-based Blue Star managed to hit a fresh 52-week high on Wednesday, after posting a consolidated net profit of ₹58.41 crore in the third quarter that ended December 2022.
Meanwhile, Voltas reported a consolidated net loss of ₹110.49 crore for the third quarter ended December 2022 on account of provisioning made on overseas projects. The Tata group firm posted a consolidated net profit of ₹96.56 crore in the October-December quarter last fiscal.
IFB Industries, on the other hand, saw net sales worth ₹999.16 crore in December 2022 up 4.83% from ₹953.12 crore in December 2021. The firm’s quarterly net loss was at ₹1.14 crore in December 2022, a 64.49% improvement from ₹3.21 crore in December 2021.
Price Action: Here’s how the three AC makers performed at the bourses when markets closed on Wednesday:
IFB Industries Ltd. shares were trading 2.17% higher at ₹850.95
Blue Star Ltd. shares were trading 2.66% higher at ₹1451.45
Voltas Ltd. shares were trading 2.05% higher at ₹914.20
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