Budget 2018: Agricultural related stocks gain; M&M, Escorts hit new high

Escorts, M&M,Action Construction Equipment, Shakti Pumps, PI Industries, Monsanto India, Excel Crop Care and UPL were up 2% to 6% on BSE.

Shares of agricultural related sectors like agro chemicals, pesticides and tractor were trading higher by up to 6% on after the Finance Minister Arun Jaitely in Budget speech said the Minimum Support Price of all crops shall be increased to at least 1.5 times that of the production cost.

Escorts (up 6% at Rs 861) and Mahindra & Mahindra (up 3.5% at Rs 790) have hit their respective record highs on BSE in intra-day trade. Action Construction Equipment and Shakti Pumps (India) engaged in agri equipment segment were up 6% each.

NACL Industries, PI Industries, Monsanto India, Excel Crop Care, UPL and Meghani Organics from agrochemicals sector up in the range of 2% to 6% on BSE. On comparison, the S&P BSE Sensex was up 0.55% at 36,162 at 11:37 AM.

Government promises a Minimum Support Price of 150% of production cost of agricultural produce along with setting up of Gramin Agricultural Markets.  This is a significant measure and would be a shot in the arm for the small and marginalized farmers"