Dixon Technologies, Kaynes Technology, CG Power shares gain up to 10%; here’s why

Semiconductor and electronics manufacturing stocks such as Dixon Technologies, Kaynes Technology and CG Power rallied on Tuesday after the landmark bilateral trade agreement between New Delhi and Washington. US President Donald Trump’s announced to slash the tariff on Indian goods, bringing it down to 18 per cent from the earlier 50 per cent.

CG Power and Industrial Solutions shares surged as much as 10 per cent to hit a day’s high of Rs 669.15 on the BSE in Tuesday’s trade, from its previous close of Rs 608.35.

Dixon Technologies shares climbed 6.39 per cent to Rs 11,003.45 in early trade, against its previous close of Rs 10,342.45. Kaynes Technology India's stock jumped 5.09 per cent to Rs 3,648.45, while RIR Power Electronics counter advanced 3.07 per cent to Rs 202.95.

"The India-US trade deal can be a major catalyst for India's electronics, semiconductor, and technology ecosystem," Ashok Chandak, President of SEMI India and IESA, told PTI on Tuesday.

Earlier in a stock exchange filing, CG Power revealed that it had secured a large-scale data centre project order from the United States worth Rs 900 crore for the supply of power transformers.

“Dixon is showing early signs of trend reversal after a corrective phase. The stock has moved above its 5 and 9 EMA, indicating short-term strength. RSI at 45 suggests momentum is improving with ample room for upside,” said Riyank Arora - AVP (Derivatives & HNI) at Octanom Technologies.

A bullish MACD crossover confirms positive bias. On the fundamental side, the government’s increase in the electronic components manufacturing scheme outlay to Rs 40,000 crore provides a strong medium-term tailwind. Resistance lies near 11,500; support at 10,600, Arora said.

Chandak noted that the pact goes beyond just tariffs. "By improving market access, enabling smoother flow of capital equipment and advanced technologies, and, when complemented by the iCET and TRUST initiatives, strengthening trusted supply chains and deepening technology collaboration, the agreement significantly enhances India's attractiveness as a global manufacturing and innovation hub," he added.

For CG Power stock, Arora said RSI at 63 reflects healthy bullish strength without being overbought. “The bullish MACD crossover and sustained trade above 5 and 9 EMA confirm a strong short-term uptrend. Immediate resistance is seen near 700, while supports are placed around 630–640. Trend remains positive above short-term averages,” he added.

Chandak told PTI that the deal will accelerate semiconductor design and manufacturing, increase electronics value addition, and broaden collaboration across AI, data centres, and advanced manufacturing, creating high-skill jobs and positioning India as a strategic and reliable partner in the global technology value chain.

Meanwhile, Dixon Technologies, earlier in its earnings presentation, noted the completion of the acquisition of a 51 per cent stake in Kunshan Q Tech Microelectronics (India) Private Ltd in September 2025, a move may strengthen its backward integration capabilities.