Agri-related stocks surge, Chambal Fertilisers, Escorts, Shakti Pumps hit 52-week high
Agriculture-related stocks witnessed a sharp rally on the bourses in Friday’s trade on the back of expectations that the sector will reap benefits from the government’s initiative to boost rural income.
Among agriculture-related stocks, Chambal Fertilisers & Chemicals, Escorts and Shakti Pumps hit their 52-week high on the bourses during the trade, while other stocks also recorded a rally. Madras Fertilisers, Fertilizers & Chemicals Travancore, Rashtriya Chemicals & Fertilisers, Chambal Fertilisers & Chemicals, Deepak Fertilisers, Shakti Pumps, Roto Pumps and Escorts were up by 3 per cent to 8 per cent on BSE.
Besides, the introduction of MSP, the government had announced its plans to double the farm incomes and allocate higher funds for irrigation purposes for farms. The increased emphasis of the government on the welfare of farmers and revival of rural economy is likely to boost the business of agriculture related commodities as well.
Furthermore, the predictions of normal southwest monsoon in the current year will ensure a stable crop growth in the country. One of the leading weather forecast company, Skymet has released its forecast that monsoon in the current year is likely to be 100 per cent of the long period average with a model error of +/- 5 per cent, providing impetus to the agriculture stocks.