Dixon Technologies, Kaynes Technology, Cyient DLM Share Price Rally Up to 7% After Cabinet Approves New Manufacturing Schemes

Shares of electronic manufacturing services (EMS) companies rallied during intraday trading on July 16, 2026, after the Union Cabinet approved 2 major schemes aimed at strengthening India's electronics and semiconductor manufacturing ecosystem.

Leading EMS stocks, including Dixon Technologies, Kaynes Technology, and Cyient DLM, recorded strong gains as investors welcomed the government's policy support.

EMS Stocks Rise Up to 7%

Several EMS companies traded higher during the session.

• Dixon Technologies gained over 6%
• Kaynes Technology and Cyient DLM rose between 3% and 7%
• Syrma SGS Technology, Amber Enterprises, and PG Electroplast advanced around 1% to 2% 

In comparison, the BSE Sensex was up around 0.3% during the same period.

Strong Performance Over the Past Month

EMS stocks have outperformed the broader market over the past month.

• Dixon Technologies has gained around 20%
• Cyient DLM has risen about 19%
• PG Electroplast has advanced nearly 15%
• Syrma SGS Technology is up around 10%
• Kaynes Technology has gained approximately 8% 

During the same period, the benchmark index has risen by less than 1%.

What Is Driving the Rally?

The rally follows the Union Cabinet's approval of 2 major initiatives:

• Mobile Phone Manufacturing Scheme with an outlay of ₹62,500 crore, extending support for smartphone manufacturing.
• India Semiconductor Mission (ISM) 2.0 with an outlay of around ₹1.27 lakh crore, aimed at strengthening India's semiconductor ecosystem. 

The new semiconductor mission shifts its focus from only setting up semiconductor fabrication units to developing the complete ecosystem, including:

• Chip design
• Semiconductor equipment
• Raw materials
• Specialty chemicals
• Research and development
• Skill development 

The revised incentive structure also introduces targeted support for different segments of the semiconductor industry.

Read More: Paytm Share Price in Focus; Board to Consider Bonus Share Issue on July 20, 2026!

Conclusion

The government's approval of the Mobile Phone Manufacturing Scheme and ISM 2.0 has boosted investor sentiment towards EMS and semiconductor-related stocks. 

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