New Delhi, Sept. 5 -- It was the second straight day of stellar gains for MIC Electronics, with the stock rising another 19% to hit a 3-month high of Rs.66.6 apiece after ending the previous session with a 9% rally, taking its two-day cumulative gain to 29.3%. The massive rally has caught investors' attention, as shares that had remained sideways in recent months suddenly spiked, prompting the Street to search for reasons behind the upsurge.

Seema Srivastava, Senior Research Analyst at SMC Global Securities, said that the GST rate reduction from 28% to 18%, which is likely to boost festive season demand and benefit electronics companies, was the key reason behind the sharp rise in MIC Electronics shares.

The two-day rally has also led t...