The Economic Times daily newspaper is available online now.

    Battery stocks’ rally may extend after $2 billion surge

    Synopsis

    Exide and Amara Raja added a combined market value of about $2 billion in April as investors boosted their bets in the nascent clean car market. Purchase subsidies, lower operating costs and state-level policy will continue to support growth in the industry, analysts said.

    Battery stocks’ rally may extend after $2 billion surgeAgencies
    A rally in India’s battery maker stocks this month looks poised to extend amid optimism over further collaborations with foreign vehicle manufacturers.

    A rally of 45% has made Exide Industries Ltd. among the top gainers on the broader S&P BSE500 Index in April, after announcing a strategic cooperation to produce lithium iron phosphate cells for Hyundai Motor Co. and Kia Corp. That also boosted shares of Amara Raja Energy & Mobility Ltd.

    Global carmakers, including BYD Co., are doubling down on the burgeoning electric vehicle market in the South Asian nation as sales cool in China, the US and Europe. That’s expected to give local component makers a long term boost.

    Battery StocksAgencies

    “These stocks are in a very good macro environment,” said Abhay Agarwal, a fund manager at Piper Serica Advisors Pvt. “This will be a big story for the next five years” that can provide multifold returns.

    Exide and Amara Raja added a combined market value of about $2 billion in April as investors boosted their bets in the nascent clean car market.

    Purchase subsidies, lower operating costs and state-level policy will continue to support growth in the industry, analysts said. Meanwhile, new model launches and the expected installation of more fast chargers may boost demand from consumers.
    The deal with Koran firms may open the door for Exide to work with other foreign carmakers, said Amit Hiranandani, an analyst at Smifs Ltd.


    (You can now subscribe to our ETMarkets WhatsApp channel)

    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more

    (You can now subscribe to our ETMarkets WhatsApp channel)

    (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in