Shares of Shakti Pumps (India) has soared 17% to Rs 149, extending its past two days rally on the bourses on back of heavy volumes.
In past three trading sessions, the stock zoomed 54% from Rs 97 on February 26, as compared to 4.4% rise in the S&P BSE Sensex.
Shakti Pumps is manufacturer of energy efficient submersible pumps. The company provides a range of solutions in many areas with its array of world class, cost & energy efficient pumps.
Excise duty on electric motor, shafts, sleeve, chamber, impeller, and washer required for the manufacture of centrifugal pump reduced from 12.5% to 6% where more than 50% of such pumps are used in agriculture.
The reduction in excise duty will benefit Shakti Pumps as it manufactures motors for all products on which the duty is dropped, says Akhilesh Maru, CFO of the company in interview with the CNBC-TV18.
At 12:24 PM, the stock was up 14% at Rs 145 on the BSE. The trading volumes on the counter jumped an over four-fold with a combined 620,181 shares changed hands on the BSE and NSE so far.