Investors bet on fertiliser stocks as IMD predicts good monsoon
Fertiliser stocks surged on Wednesday after India Meteorological Department (IMD) said that India will receive higher monsoon rainfall than its previous forecast.
A Reuters report said, “India looks likely to receive higher monsoon rainfall than previously forecast as concern over the El Nino weather condition has eased, the chief of the India Meteorological Department (IMD) said on Tuesday, raising prospects of higher farm and economic growth.”
Many fertiliser stocks touched 52-week high during intra-day trading.
Share price of Chambal Fertilizers & Chemicals after touching a 52-week high of Rs 138 a piece was trading on BSE at Rs 130.45 per piece up by Rs 10 or 8.35%.
Rashtriya Chemicals & Fertilizers which was trading at Rs 97.20 per piece higher by Rs 6 or 7.23%. It touched a 52-week high of Rs 99.60 per piece.
Other companies that also touched 52-week high were Basant Agro Tech (Rs 11.55 per piece), Shiva Global Agro Industries (Rs 94 per piece) and Southern Petrochemicals Limited (Rs 30.30 per piece) were trading in the range of 6% - 12% on BSE.
Major companies also saw surge in their share price. Coromandel International stocks were trading at Rs 414.50 per piece up Rs 12 or 3.21%, while Zuari Agro Chemicals jumped over Rs 14 or 3.43% trading at Rs 437.75 per piece.
Gujarat State Fertilizer & Chemicals was also trading up by Rs 3 or 2.09% at Rs 146.30 per piece. However, Deepak Fertilizer was trading flat at Rs 260.15 per piece.
On April 18, 2017, the IMD stated for this year's monsoon is set to be normal. It said that monsoon rainfall may be 96% of the normal with an error margin of 5% on either side.
IMD further said that there are more than 50% chance of El-Nino developing from August.