Agrochemical stocks rally

The build-up for the Budget FY18 has most certainly begun. If not convinced, take a look at the various agrochemical stocks.

Jubilant Industries hit a new high on Friday at Rs.341.80 and today too, it hit another new high at Rs.384.40. Volumes are up almost 10 times. Another stock, Paushak did not hit a new high but is up over 3% at Rs.549 levels. Rallis also went up almost 2% to Rs.115. UPL Ltd rose almost 2.5% to Rs.702.

Apart from already hiking the minimum support price (MSP), it is almost always seen that the Budget has many sops for the farming sector – maximum when compared to other sectors. The focus of the Govt is well being of the farmer, higher yield and with a rising population and need to maintain food security, the thrust is always to ensure that this sector is given all benefits. Thus the market has started rallying in this “usual suspect” sector and this is expected to continue till the Budget is announced