Indian EMS Stocks Rally as US-China Trade War Heats Up, Boosting India’s Manufacturing Prospects

Indian EMS stocks moved up sharply on Friday, rising as much as 8%, as investors grew confident that the deepening US-China trade dispute could open new doors for Indian manufacturers. With both countries ramping up tariffs on each other’s goods, there’s growing expectation that global supply chains might start shifting away from China; and India could be one of the biggest winners from that shift.

The US-China tariff war took a sharp turn this week, after U.S. President Donald Trump announced sweeping 145% tariffs on a wide range of Chinese imports, in a bid to pressure Beijing over trade imbalances and alleged unfair practices. In retaliation, China hit back with a steep hike in its own tariffs on US goods, raising them from 84% to a staggering 125%, effective April 12.

This escalation has triggered renewed optimism among investors in India’s Electronics Manufacturing Services (EMS) sector, which is widely expected to benefit from increasing global diversification away from Chinese supply chains. Stocks of key Indian EMS players like Dixon Technologies, Kaynes Technology, Amber Enterprises, and PG Electroplast surged in Friday’s trade, as market participants anticipated a rise in order inflows and stronger margins.

Indian EMS Stocks: Dixon Technologies Leads the Charge

Dixon Technologies (India) Ltd emerged as the top performer on the Nifty Consumer Durables index, rallying 7.66% by the close of trade. The stock, which had already seen gains of around 6% over the past two sessions, opened Friday with a 5% jump and maintained its momentum throughout the day. In total, Dixon’s stock has gained nearly 14% over the last three trading days, reflecting growing confidence in its role as a key player in India’s EMS sector.

According to analysts, the rally is being driven by hopes that Indian EMS stocks will see more business coming their way, particularly in contract manufacturing and exports of smartphones and other consumer electronics. With global tech giants looking to reduce their reliance on Chinese suppliers, India is starting to look like a strong alternative. Reports that Apple may increase its iPhone production in India have only added to the positive sentiment in the market.

PG Electroplast and Kaynes Technology Follow Suit

PG Electroplast (PGEL) was another notable gainer, rising 8.41% to hit a high of ₹923 per share. The counter opened with a 3.83% gain, building on the sector-wide optimism. Meanwhile, shares of Kaynes Technology and Amber Enterprises also saw solid traction, posting intraday gains between 6% to 8%.

The broader EMS rally underscores the market’s belief that India is in a strong position to capture additional business in the wake of global trade disruptions. As global tech companies look for alternatives to Chinese supply chains, Indian EMS stocks are becoming increasingly attractive to investors.