Gold bangles and necklace sit at the Dwarkadas Chandumal Jewelers store in the Zaveri Bazaar area of Mumbai (Photographer: Dhiraj Singh/Bloomberg)

Consumer Durables Index Clocks Best Returns In 12 Years

Consumer Durables Index Clocks Best Returns In 12 Years

The BSE Consumer Durable Index ended 2017 with the best returns in 12 years. After fetching negative returns of around 6 percent last year, it doubled this time. That’s the second best sectoral performance after the realty index, which gained 105 percent.

The 10 home appliance, electronics and household goods makers on the index clocked gains of up to 197 percent. While VIP Industries Ltd. was the top gainer, Titan Company Ltd. and PC Jeweller Ltd. also rallies. Even the worst performer—TTK Prestige Ltd.—ended 36 percent higher.

The Goods and Services Tax will favour organised players in the sector, according to ICICI Direct. Rising incomes of the Indian middle class and rural households on the back of good monsoon will boost the sector, it said.

Will the rally last? Of the nine stocks with more than five analyst rating, eight have a negative potential return, according to Bloomberg.