One sector, which is getting a lot of attention is the agri-inputs. This pertains to seeds, fetilisers, crop-nutri and protection products. Q4 is expected to be exceptionally good and the reasons for that are many:

1: Good kharif output leading to increase in rural income

2: Two consecutive good monsoon

3: Water levels at reservoirs remained good

4: All this led to more acreage of sowing during winter, rabi season

5: Domestic demand apart, export was also good especially to Latin America where climate change pushed their demand from seasonally Q3 to Q4 this year

6: Seasonally Q4 see’s robust exports to US and Europe

7: Low base effect will also be at play

IMD and Skymet have predicted this year also to have normal monsoon and that means kharif this year, which starts May-June will also remain robust. UPL, Rallis India, Bayer Crop and PI Industries are stocks to be watched.

This is not a buy or sell recommendation, while Stock Recommendations are provided exclusively to paid members in the Member Zone.