share market
As soon as positive signals came regarding the trade deal between India and America, enthusiasm was seen in the stock market. Especially huge buying started in the shares of companies related to electronics manufacturing. Investors earned excellent returns of 10 to 20 percent in a short time.
There was concern among investors regarding American tariffs for the last few months, but now the atmosphere seems to be changing. Expectations of a trade deal and news of tariff reduction have made the market mood completely positive.
Rally of shares continued even after the budget
Despite the rise on the budget day on Tuesday, February 3, the process of buying in many stocks did not stop. Companies related to electronics manufacturing sector i.e. EMS seemed to be the first choice of investors. There was a continuous rise in the shares of companies like Syrma SGS Technology, Dixon Technologies, Kaynes Technology. The expectation of increasing opportunities for India in the American market further strengthened the confidence about the earnings of these companies.
Shares jumped up to 20%, investors’ silver
Shares of Avalon Technologies rose the most. The company’s shares jumped 20 percent and got locked on the upper circuit and reached the level of Rs 1,022. This is also its highest level in the last two months. At the same time, the shares of Syrma SGS Technology increased by about 11 percent and crossed Rs 800. A rise of about 7 percent was recorded in Dixon Technologies and a rise of about 8 percent was recorded in Kaynes Technology. Apart from this, shares like Amber Enterprises and PG Electroplast were also seen trading at high levels of the day.
Why did confidence suddenly increase?
The main reason for this is the relief from tariffs imposed by America on Indian goods. US President Donald Trump has indicated that the tariff on Indian imports has been reduced to 18 percent. These steps may make it easier for Indian companies to do business in America, which is likely to increase exports.
Why will the EMS sector benefit the most?
Experts believe that the electronics manufacturing services sector will get the biggest benefit from the tariff relief. According to domestic brokerage firm Axis Direct, India can now strengthen its hold in sectors like smartphone assembly, semiconductor packaging and electronic component manufacturing. Due to changes in the supply chain and PLI scheme, India may get better opportunities compared to China and other Asian countries. This is expected to benefit not only the big EMS companies but also the small suppliers associated with them.
What is the signal for investors?
This news of the trade deal has brought relief to those investors who were seeing pressure in the market for a long time. The performance of the Indian stock market in 2025 was weak in Asia, but now the situation seems to be changing. However, experts advise not to invest in a hurry after seeing the bullish trend. It is still important to decide on the right company with strong fundamentals and a long-term perspective.
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