Analysts said concerns over agri stocks are justified due to the rainfall deficit, but suggested investors to stay selective rather than avoid the sector altogether.
According to a recent India Meteorological Department (IMD) release, India recorded 45.6 mm of rainfall by June 20 against the seasonal normal of 84.4 mm, resulting in a 46 per cent shortfall.
Fertiliser stocks are in high demand today after reports said that a surge in global fertiliser prices is likely to double the fertiliser subsidy bill from the Budget estimate of ₹1.7 trillion.
Amol Athawale of Kotak Securities believes Chambal Fertilisers and M&M are favourably placed, while Coromandel looks weak on charts. The analyst flags key levels for these 3 monsoon-related stocks.
Stocks picks: Ajit Mishra of Religare Broking recommends buying Bajaj Auto, Chambal Fertilisers, Premier Energies; check target here
Stocks to buy: Ruchit Jain of Motilal Oswal Financial Services recommends buying Premier Energies, JSW Energy and one other stock