Blue Star to Voltas: AC stocks surge up to 9% on anticipation of rise in summer demand

Shares of air conditioner stocks surged up to 9% on Tuesday, March 4, despite a flat domestic market, on expectations of robust summer demand following an Indian Meteorological Department (IMD) prediction.

The Indian Meteorological Department (IMD) has predicted higher-than-usual temperature in the summer season, along with an increase in the number of heatwave days across India, following an unusually warm month of February.

In a recent update on February 28, 2025, the IMD predicted that most parts of the country would experience higher-than-normal temperatures over the months spanning March to May, except certain regions in northwest and peninsular India.

The weather agency has also warned of an uptick in heatwave days, particularly in central and northern regions, which could lead to a surge in the demand of cooling products.

Historically, air conditioner and cooling solution providers witness an uptick in sales when summers turn severe. A prolonged heatwave can boost both retail and institutional demand for air conditioning units, leading to stronger revenue growth for key players in the sector.

Investors are closely monitoring temperature trends and consumer spending patterns, as a strong summer season could translate into higher earnings for companies in the air conditioning sector.