Schneider Electric today jumped up over 13.5% to hit a 7-year high at Rs.202.50 and volumes were up more than 5x.
The company is engaged in the business of manufacturing, designing, building and servicing, technologically advanced products and systems for electricity distribution including products such as distribution transformers, medium voltage switchgears, medium and low voltage protection relays and electricity distribution and automation equipment.
The outlook for the infra sector is expected to be very bright as there will be major nation building as 2024, the year of Lok Sabha election nears. And with power infra, analysts are giving it a big thumbs up. Cement is another sector being accumulated for the very same reason.
Reforms in the power and distribution sector, the speedy implementation of bullet trains and various ‘corridors’, are all expected to bolster the company’s pipeline.
With many orders shifting from the bygone Q2 to the current Q3, the market expects the pipeline to be very robust.
Thus the stock price hit this multi-year high not based on any new development or news from the company but a shift in the market preference for this stock on expected better outlook.