Brokerages expect Dixon Technologies and Amber Enterprises to benefit from the Centre's new electronics manufacturing incentives, though margin gains for Dixon may be lower than under PLI 1.0.
The Union Cabinet granted approvals to two key schemes: the Mobile Phone Manufacturing Scheme with an outlay of ₹62,500 crore, and ISM 2.0 with a budgeted outlay of ₹1.3 trillion.
Dixon Technologies today was up 4 per cent intraday as the company secured government approval to set up its joint venture (JV) with Vivo Mobile India (VMI).
The government extended customs duty concessions on a range of machinery and components used in electronics manufacturing until March 31, 2029.
Today's rally was buoyed by a report that the government is likely to clear Dixon-Vivo JV this month, which will reduce the risk exposure of the Chinese mobile company to India.
Ajit Mishra of Religare Broking expects SAIL to rally to ₹240, and Dixon Technologies past ₹13,000-mark; whereas, he cautions Kaynes Technology could crack to ₹2,500 if it breaks key support.
Dixon Technologies expects export growth, speciality EMS expansion and the proposed Vivo joint venture to support earnings amid margin pressures and weak demand
Dixon Technologies' Q4FY26 results have raised concerns over weak smartphone demand, fading PLI incentives and delay in Vivo JV approval.
Stocks to watch today: Jewellery stocks, Tata Power, RVNL, Airtel, Cipla, Dixon Technologies, Dr Reddy's, Berger Paints are among others that will remain in focus today.
Analyst said that demand and consumption of electricity may further rise due to more intense heatwaves, with more frequent use of air conditioners, air coolers, and other appliances.
Motilal Oswal sees 30% upside in Dixon Technologies share price despite near-term headwinds from weak smartphone demand and rising costs. The brokerage has reiterated 'Buy' with ₹14,700 target price
Following the announcement, the Nifty Consumer Durables index surged 4.48 per cent to hit 35,678 levels during intraday trading on Wednesday
Analysts believe that the EMS industry is a key component of India's broader electronics ecosystem and has shown strong growth in recent years
On the Nifty Midcap 100, Hindustan Petroleum stock was the top loser, down 4.35 per cent at ₹334.35 per cent
Analysts said that companies involved in sectors like EV, EMS, auto ancillary, BESS, renewable energy, and specialty chemicals are expected to benefit most from the easing FDI rules
Dixon Technologies shares surged after MeitY approved its joint venture with HKC Overseas to manufacture display modules, with analysts expecting improved margins and value addition
The buying on the counter came after Ministry of Electronics and Information Technology approved Dixon Tech's joint venture (JV) with HKC Overseas to manufacture display modules
The brokerage added that Dixon Tech's ramp-up in information technology (IT) hardware and telecom remains on track and could support growth
Motilal Oswal estimates a 30 per cent compound annual growth rate (CAGR) in aggregate revenue of their EMS coverage companies over FY25-28.
Dixon CMD Atul Lall says India is at an electronics manufacturing inflection point and must deepen value addition, create IP and expand global capacity as schemes drive rapid sectoral growth