Pricing worries weigh on agri-input stocks: Higher MSP, good rain positives

Analysts are awaiting June quarter numbers and management commentary for further cues

At a time when the country is witnessing its third consecutive year of good/normal monsoon, few would expect agri-input stocks to fall. Over the past six months, many have corrected significantly with Rallis India, PI Industries, UPL and Coromandel International, among others, down 23-33 per cent from their January highs.

Even positive news such as the forecast and expectations of a normal monsoon, and government announcing a hike in minimum support prices (MSP), among others, have not been able to lift investor sentiment. 

While analysts believe that much of the bad news is now priced in, they are awaiting June quarter numbers