Market Shock: Cable Stocks Plunge Amid Ultratech's Bold Entry

The stock market witnessed a significant drop in shares of key companies in the cables sector like KEI Industries, R R Kabel, and Polycab India following Ultratech Cement's announcement to venture into the wires and cables market with a major investment plan.

Shares in the cables sector, including notable players like KEI Industries, R R Kabel, and Polycab India, faced a dramatic downturn on Thursday. This decline was triggered by Ultratech Cement's announcement to enter the wires and cables market.

The market saw significant drops: KEI Industries fell by 21.03%, R R Kabel by 19.92%, and Polycab India by 18.84%. In total, these fluctuations led to a market valuation erosion of Rs 2,49,840.99 crore.

Ultratech, under the Aditya Birla Group, plans a hefty Rs 1,800 crore investment to establish a plant in Gujarat, aiming for operation by December 2026. This move aligns with their strategy to expand within the construction value chain.