Monsoon, higher prices expected to aid recovery in agrochemical stocks

The stocks of companies manufacturing agricultural chemicals have seen a rally over the last 10 days due to expectations that a favourable monsoon, higher crop prices, and government steps to boost rural economy will aid the sector. Higher demand and improved volumes are expected to help the companies liquidate excess inventory. Given the positive sentiment, the largest listed players in the sector have gained 10 per cent on aggregate since the start of the month compared to the flat performance of benchmark indices.

The prediction of a normal monsoon this year by the Indian Meteorological Department, according to Motilal Oswal