BSE Consumer Durables index up 3%; Titan surges 6%

After a rally in other sectors investors are now turning to consumer durables stocks as economy picks up steam

After the sharp rally in other sectors such as auto, bank, pharma, capital goods and IT investors are now turning focus to customer discretionary shares.

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.

"In the consumer durables space, Whirpool is our top pick as the company is on the verge of a turnaround. Further, the company is debt free and has a wide range of products wherein seasonal impact is much less compared to other players," said Akshata Deshmukh, Head-Equities at Networth Capital.

However, valuations of Whirpool seem to be stretched at current levels and one can accumulate the stock on dips at Rs 400-410 levels. One year target for the stock is Rs 510, she added.

The BSE Consumer Durables Index was the top gainer among the sectoral indices up over 3% at 9,103 after touching an intra-day high of 9,169.

Titan was the top gainer up 6% after a foreign brokerage upgraded the stock to overweight and raised the target price. The company expects improvement in margins led by the jewellery business under the Tanishq brand.

Other gainers in the Consumer Durables index include, Bajaj Electricals, VIP Industries, Rajesh Exports, Blue Star up 2-3% each.