Under normal circumstances, a normal monsoon prediction from the IMD would have been enough to cheer up the market but thanks to the pandemic, this news is largely ignored except for the ‘agriculture’ stocks.
With kharif season expected to be robust, consumption of fertilisers and agrochemicals is expected to be good and that has sent stocks like Bayer Cropscience, PI Industries, Rallis India and Dhanuka Agritech hitting new highs. Kaveri Seed too hit a new high today at Rs.593.70.
Infact, Bayer hit a new lifetime high at Rs.5714. It announced yesterday that it has partnered with agri business division of ITC to extend the reach of its crop protection products through ITC's e-Choupal 4.0 platform. The partnership has commenced as a pilot project in Mysore in Karnataka and will gradually be expanded to other geographies across India,
With most of the industry suffering on account of Covid, agriculture is the only sector which currently looks recession proof. CRISIL expects a real agricultural growth of 2.5% in FY21.