Shares of KEI Industries came under pressure in trade after reports emerged suggesting that the Income Tax Department had conducted searches linked to the company, prompting the National Stock Exchange (NSE) to seek clarification from the wire and cable manufacturer.
In a communication issued to the company, NSE said it had sought clarification from KEI Industries with respect to a recent news report titled “KEI Industries Shares Tumble More Than 3% Amid Reports Of Income Tax Dept Raids.” The exchange added that the response from the company was awaited.
The stock declined more than 3% intraday amid the reports, with investors reacting cautiously to the developments. According to market data, KEI Industries shares slipped around 2.6%-3% during the session.
While there has been no official confirmation from the company regarding any Income Tax action so far, the reports triggered selling pressure in the counter after a strong rally over the past year. KEI Industries has been one of the best-performing stocks in the cables and wires space, backed by robust earnings growth, strong infrastructure demand and capacity expansion plans.
The company recently remained in focus after brokerage firm Morgan Stanley reportedly downgraded the stock to “Equal Weight,” citing a more balanced risk-reward profile following the sharp rally in the counter and potential margin pressures ahead.
KEI Industries is among India’s leading manufacturers of wires, cables and stainless-steel wires, with a strong presence across retail, institutional and export markets. The company has benefited from rising investments in power transmission, real estate, railways and infrastructure sectors in recent years.
Investors are now awaiting an official clarification from the company regarding the reported Income Tax searches and any potential impact on business operations.