Consumer Durables index down over 7% since Monday

Consumer Durables Index is the top loser among the sectoral indices on the BSE for the fourth straight session, down almost 2% after high inflation for the past few months has led to lower discretionary spends.
 
The sectoral index has lost over 7% so far since Friday’s close of 7,264.

"Markets in general have been weak the last couple of days. The stocks, especially from the consumer durables space, are more volatile than the benchmark. Specific stocks, such as Titan and Gitanjali Gems, have fallen more for speculative reasons than news backed trading," said Jagannathan Thunuguntla, Equity Head- SMC Capital.

"Specific stocks are falling because of the lack of demand in individual companies. The evalutions cannot be sustained and therefore the consumption story is affected. Whenever any good sector turns weak, investors get jittery. That is exactly what is happening here. To exit the whole sector is not advisable. But one should take a call after studying how expensive a stock is and whether it can bounce back in good time, " said Deven Choksey, managing director, KR Choksey Securities.

Retail inflation which released two days back remained in double digit for the third straight month in February.

Retail inflation moved up for the fifth consecutive month to 10.91% in February -- remaining in the double-digit terrain for the third month in a row -- on account of higher prices of vegetables, edible oil, cereals and protein-based items.

As per the data released today, the Wholesale Price Index (WPI) inflation rose to 6.84% in February from its level of 6.62% in January. The food articles inflation dropped to 11.38% as against 11.88% in January.

Among the stocks in the index, Gitanjali Gems and Titan are down over 3%, while Whirphool, Symphony and Rajesh Exports are down 1% each. Blue Star and TTK Prestige are trading in positive zone.