Consumer Durables Stocks

The consumer durables market of India is mainly divided into rural and urban markets. The sector includes consumer electricals such as kitchen appliances, lighting devices, fans, etc. The sector also comprises white goods such as washing machines, televisions, refrigerators, and air conditioners.

India’s consumer market growth would primarily be supported by an increasing disposable income and favourable population composition. In 2021, the Indian appliances and consumer electronics industry stood at US$ 9.84 billion, and it is expected to more than double to reach ₹1.48 lakh crore (US$ 21.18 billion) by 2025.

Tech companies are building an Indian base for the production of electronic components and promoting exports in an effort to gain traction in the Indian consumer electronics industry. India’s Consumer Electronics and Appliances Industry is expected to be the 5th largest in the world by 2025. India aims to produce US$300 billion worth of electronics and export US$120 billion worth of electronics by 2026.

Investing in consumer durables sector stocks requires careful consideration of various factors to make informed decisions. Here are some key factors to consider:

• Economic Conditions: Consumer durables stocks are sensitive to economic conditions. A booming economy usually leads to increased consumer spending on durable goods, while economic downturns can result in decreased demand.
• Consumer Sentiment: Monitor consumer sentiment and confidence indexes. Positive sentiment often leads to higher spending on non-essential items like consumer durables.
• Market Trends: Stay informed about current trends in consumer preferences. The consumer durables sector is influenced by changes in technology, design, and lifestyle choices.
• Competitive Landscape: Analyse the competitive landscape of companies within the sector. Look for companies with strong market positions, brand recognition, and innovation capabilities.
• Regulatory Environment: Be aware of any regulations or policies that may impact the consumer durables sector. Changes in regulations can affect production costs and market dynamics.
• Global Supply Chain: Consumer durables companies often source components globally. Evaluate how geopolitical events and disruptions in the global supply chain may impact the sector.
• Financial Health: Examine the financial health of individual companies. Look at factors such as debt levels, cash flow, and profitability to assess their ability to weather economic downturns.

To invest in sector stocks via Angel One, follow these steps:

• Log in to your Angel One account.
• Click on the search icon and look for your desired consumer durables sector stock.
• Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
• To complete your transaction, click on the ‘Buy’ button.

You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’