Shares of Polycab India surged by up to 3.3% on Friday to Rs 4,828 on the BSE, recovering from an 18.8% drop in the previous session as investors reevaluated the competitive risks triggered by UltraTech Cement’s unexpected entry into the wires and cables industry.
The rebound followed a sharp selloff on Thursday, when HSBC reduced target prices for leading wires and cables companies by up to 23%. The downgrade was driven by concerns that UltraTech’s Rs 1,800 crore investment could be an “industry-fragmenting” event, potentially affecting long-term earnings growth for existing players.
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