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A rise in sales of home appliances like air conditioners and fans due to soaring summer temperatures across western and northern India has led to a sharp increase in the S&P BSE consumer durables and capital goods indices, which touched their 52-week high levels on Thursday.

The consumer durables touched a new 52-week high of 15,132.34 points, while the capital goods index surged to a new high level of 16,335.61 points.

Also Read: ‘Killer’ Heat Wave Claims 5 Lives In Maharashtra; IMD Issues Warning As Temperature Soars Further

“Next three months are expected to be some of the hottest in recent times, according to weather forecasters. Home appliances companies, especially those in refrigerators, air conditioners and fans are naturally to benefit from this,” Vijay Singhania, founder and Director of brokerage firm Trade Smart Online, said.

The India Meteorological Department has declared heatwave condition in almost nine states of the northwest, west and central India, including states of Rajasthan, Gujarat and Madhya Pradesh.

Also Read: Temperature Breaking Records In India, Maharashtra’s Bhira Town Records A searing 46.5 Degrees

According to an India Brand Equity Foundation (IBEF) report, the consumer durables market is expected to reach US$ 20.6 billion by 2020.

“Demand for durables like refrigerators as well as consumer electronics goods are likely to witness growing demand in the coming years in the rural markets as the government plans to invest significantly in rural electrification,” the report said.

Moreover, the increased demand for capital goods was attributed to the government’s huge allocation of funds for the country’s infrastructure development.

“Capital goods stocks are reflecting the increased order flow from government bodies. Government in its budget had already mentioned the increased allocation for infrastructure. Capital goods stocks are reflecting the changing dynamics on the ground,” Singhania added.

At around 2.47 p.m., the consumer durables index was trading at 15,080.65 points — up 188.40 points or 1.27 per cent.

Similarly, the capital goods index was up by 122.64 points or 0.76 per cent at 16,319.50 points.

Among individual stocks in the consumer durables segment, Whirpool India (up 3.16 per cent), Blue Star (up 2.25 per cent) and Crompton Greaves Consumer Electricals (up 1.84 per cent) were trading with gains.

While Suzlon (up 5.75 per cent), Reliance Defence and Engineering (up 2.43 per cent) and Havells India (up 1.95 per cent) were among the leading stocks in the capital goods sector.