Agri related stocks rally;Chambal Fertilisers, Shakti Pumps hit 52-wk highs

Shares of agriculture-related stocks were in focus with Chambal Fertilisers & Chemicals, Escorts and Shakti Pumps (India) hitting their respective 52-week highs on expectations of a government thrust to drive sector.

Madras Fertilizers, Fertilizers & Chemicals Travancore (FACT), Rashtriya Chemicals & Fertilisers (RCF), Chambal Fertilisers & Chemicals and Deepak Fertilisers & Petrochemicals from fertilizers, Shakti Pumps (India) and Roto Pumps from pumps manufacturer and Escorts from the tractors were up in the range of 3% to 8% on the market. On comparison, the S&P BSE Sensex was up 0.44% at 34,252 at 10:06 am.

“Given government’s intent to double farm incomes, we expect agri input players to report strong growth in FY19, especially after this year’s Kharif season hit by Goods and Services Tax (GST). In irrigation, higher funds allocation by government will support growth. Falling subsidy and direct benefit transfer (DBT) implementation brighten prospects of fertiliser companies,” analysts at Edelweiss Securities said in result preview.