Scorching Indian summer to boost demand for ACs, ice creams, power, CLSA says

India's warmest February in 124 years could spur a demand uptick in cooling product categories like air-conditioners, air-coolers, refrigerators and fans, says CLSA

Weather office has warned of further rise in temperature and heatwave days going ahead

Listed air-conditioner and components makers such as Voltas VOLT.NS, Blue Star BLUS.NS, Amber Enterprises AMBE.NS gain 1.4%-2.7%; Johnson Controls JCHA.NS jumps 6%

CLSA also expects summer-centric consumer categories like ice creams, beverages, dairy products to benefit from a hot summer

As power demand picks up, coal availability for non-power sector could get hurt, leading to a rise in e-auction coal prices, which is a positive for Coal India COAL.NS, according to CLSA

Coal India up 0.5% on the day

On the flip side, a hot summer could cause water scarcity which could momentarily disrupt construction projects, CLSA says

Earlier in the week, Jefferies identified AMBE, VOLT, Crompton Greaves CROP.NS as well as pipe and pump makers as its key summer plays