News

Electronics manufacturing services (EMS) stocks are likely to remain in the spotlight in today’s session. Strong Budget announcements around electronics components, semiconductors and customs duty cuts have improved sentiment for the sector.

The government has expanded the Electronics Components Manufacturing Scheme. The total outlay has been raised sharply to Rs 40,000 crore from Rs 22,919 crore.

This signals higher incentives and wider coverage. Markets see this as positive for EMS companies that supply components to mobile, industrial and consumer electronics makers.

The launch of India Semiconductor Mission 2.0 (ISM 2.0) has added to the positive trigger. The focus is on equipment, materials, Indian IP and supply chains.

Government spending for the semiconductor sector has been increased to Rs 8,000 crore in FY27. The electronics ministry allocation has also risen to Rs 21,633 crore.

Traders expect semiconductor-linked EMS names to see buying interest on the back of this clarity.

The Budget has reduced basic customs duty on key products:

Mobile phones, PCBs and chargers see BCD cut to 15 per cent from 20 per cent

BCD exemption on semiconductor, display and solar equipment extended till FY28

Lower duties reduce input costs. This improves margin outlook for domestic manufacturers. That is another near-term positive for stock prices.

Market participants are expected to track leading EMS names closely.

Kaynes Technology may see strong interest due to its exposure to semiconductors and ISM-linked opportunities

Dixon Technologies is likely to be watched given its scale in electronics manufacturing

Amber Enterprises, Syrma SGS Technology and Avalon Technologies could also see stock-specific action