EMS stocks: Dixon Technologies, Kaynes Technology jump 8-10% as Trump leads in US Presidential Election race | Stock Market News
Source: Live Mint
EMS stocks: Electronic Manufacturing Services (EMS) stocks have increased during Wednesday’s trading session as Donald Trump takes the lead in the US Presidential race, with expectations that the upcoming administration will enforce tougher tariffs on China due to the ongoing trade conflict between the two nations. Dixon Technologies share price has jumped by almost 10% today, while Kaynes Technology share price has risen by nearly 8% in the context of the US Presidential Election race.
The race is extremely close between Democratic candidate Kamala Harris and Republican nominee Donald Trump. If he returns to power, Trump has promised to raise tariffs on Chinese imports to a significant 60%. On the other hand, Kamala Harris is likely to maintain the existing tariff policy towards China, which has stayed consistent during the Biden administration, according to a report by Economic Times.
According to a report by the Economic Times, analysts suggest that if the US adopts a firmer position against China, India could emerge as a competitive hub alongside Mexico and Vietnam and as it has good labour force and government initiatives aimed at enhancing domestic manufacturing.
Prashanth Tapse, Senior Vice President of Research at Mehta Equities, highlighted that Donald Trump in the White House means negative for China, and later, the China+1 strategy would benefit India a bit. Kaynes is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company, and Dixon is an Electronic Manufacturing Services (EMS) company with operations in the electronic products vertical, such as consumer electronics, lighting, home appliances, closed-circuit television cameras (CCTVs), and mobile phones.
It is assumed that if Donald Trump comes, more Chinese demand may swift to India, and these companies would get benefited to serve the incremental demand. Today’s action in share price would be a sentimental reaction looking at Trump leading the race as of now. On the long term, both are best-in-class business models to tap the growth.
Technical Views
Dixon Technologies share price today opened at an intraday low of ₹14,499.95 apiece on the BSE, the stock touched an intraday high of ₹15,812 apiece. After a sharp fall on October 25, the prices have made a strong reversal in today’s session continuing with its formation of higher top higher bottom, highlighted Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One. Dixon Technologies share price is expected to extend move towards ₹17,000 with an immediate support at ₹14,800.
Coming to Kaynes Technology, the stock opened at ₹5,424 apiece on the BSE, the stock touched an intraday high of ₹5,724.45, and an intraday low of ₹5,373.20. According to Bhosale, the stock was consolidating for last few weeks around the 50DEMA but it has resumed its primary uptrend in today’s session. The next possible target would be ₹6,200 whereas ₹5,500 is immediate support.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
