Dixon Technologies’ share price rallied as much as 6 percent on Friday, a day after the government imposed restrictions on the import of television sets with an aim to cut inbound shipments of non-essential items given the escalating tensions between India and China. The domestic contract appliance manufacturer’s stock rose as much as 6.36 percent to Rs 7,500 apiece. At 9:35 am, the shares corrected a bit to trade 4.52 percent higher to Rs 7,370 on the NSE.
Year-to-date, the midcap stock has delivered 100 percent returns to its shareholders despite the outbreak of the COVID-19 pandemic. Since March lows, the stock has climbed 150 percent to the current levels.
“Import policy of colour television…..is amended from free to restricted,” Directorate General of Foreign Trade (DGFT) said in a notification.
Putting an item under the restricted category of imports means that the importer of that commodity would have to seek a licence from the commerce ministry’s Directorate General of Foreign Trade (DGFT) for the imports.
China is the largest exporter of TV sets to India. Besides China, countries like Vietnam, Hong Kong, Malaysia, Korea, Indonesia, Germany and Thailand are other countries that export TVs to India.
With rising tensions with the northern neighbour, India is limiting its trade links with China. In April, the Indian government notified changes in its foreign direct investment (FDI) policy by mandating government clearance for all the FDI inflows from its neighbouring countries.
Dixon Technologies is primarily engaged in the manufacturing of electronics as it core business activity. The company’s business division includes consumer electronics, home appliances, lighting solution, mobile phones and security surveillance systems.-CNBC TV18