Uptick seen in consumer goods; Consumer Durables Index up 2.5%

Consumer durables stocks seem to be on the investors' radar on hopes of an uptick in demand

The rally in the markets now seem to spread to other sectors besides the cyclicals which pushed the markets to all-time closing highs.

Stocks of consumer durables goods seem to be on the investors' radar on hopes of an uptick in demand with the BJP-led NDA government promising to unveil reforms to boost economic growth.

"As the economy picks up pace consumer spending will also increase thereby leading to higher demand for consumer goods," says Alex Mathews, Head of Research at Geojit BNP Paribas Financial Services.

The BSE Consumer Durables Index is among the top gainers among the sectoral indices on the BSE up 2.5% at 7,820 after hitting a high of 7,900 in early trades today.

According to Mr Mathews, in the consumer durables space, VIP Industries, Blue Star, Whirlpool and TTK Prestige look interesting at current levels.

Whirlpool was up 5.2% reporting a  44% year on year (yoy) increase in net profit at Rs 35.55 crore for the fourth quarter ended March 31, 2014.

Among other stocks, Gitanjali Gems surged 6.7%, PC Jeweller gained 5.6%, VIP Industries was up 4%, Videocon gained 3% while Blue Star and Titan were up over 2.3% each.