Shares of fertiliser, irrigation systems and agri machinery manufacturers were in limelight today, rising as much as 10.6 per cent, after the government said monsoon this year is expected to be normal.
Jain Irrigation Systems soared 6.13 per cent to Rs 63.15 on the BSE.
The scrip of Escorts zoomed 10.53 per cent to Rs 169.45 and VST Tillers Tractors rallied 10.58 per cent to Rs 1,703.00.
Shares of Chambal Fertilisers and Chemicals surge4.16 per cent, Kaveri Seed Company gained 3.39 per cent, Rashtriya Chemicals and Fertilizers (2.95 per cent), Deepak Fertilisers and Petrochemicals (1.12 per cent) and National Fertilizers (3.05 per cent).
“El Nino condition is declining. It is expected that La Nina condition will takeover, and will perhaps favour a good monsoon this year,” Agriculture Secretary Shobhana K Patnaik had said yesterday addressing a national conference to launch kharif campaign for 2016-17.
Met Department’s predictions will be out later this month, giving a clear picture of monsoon, he added.
Nestle stocks spurt
Nestle jumped over 5 per cent after the FMCG major said its popular product Maggi cleared the tests conducted by the Central Food Technological Research Institute (CFTRI) under the directive of Supreme Court, reiterating that the instant noodles brand is safe for consumption.
The stock after making a positive opening jumped further by 5.23 per cent to Rs 6,180 on the BSE.
On the NSE, shares of the company climbed 5.35 per cent to Rs 6,185.05.
The company shares ended the session up by 4.48 per cent at Rs 6,135.80 on the BSE.
“CFTRI has submitted analysis reports on Maggi noodles to the Supreme Court. We have been provided with a copy of the reports. We are happy that all 29 samples tested by CFTRI are clear,” Nestle India had said in a statement yesterday.
The reports state that lead levels for all samples are within permissible limits, it added.
“All 29 samples of Maggi Noodles, (the initial 13 and subsequent 16 samples), were collected by the relevant authorities following due process and then directly submitted to CFTRI,” Nestle India said.
The Supreme Court had on December 16 last year, ordered testing of samples of Maggi noodles in Mysore laboratory after the National Consumer Disputes Redressal Commission (NCDRC) had directed that it be done in Chennai.
Sugar stocks crash
Sugar stocks drop on global price fall.
Oudh Sugar Mills fell as much as 13.06 per cent, and Balrampur Chini Mills dropped as much as 4.16 per cent.
Oudh Sugar Mills stock ended down by 5.47 per cent and Balrampur Chini Mills ended down by 3.75 per cent.
Raw sugar on ICE fell more than 3 per cent to a six-week low on Monday after data last week showed a smaller-than-expected cut in the net long position held by speculators and spurred heavy selling.
Global sugar prices have fallen more than 15 per cent in the last 3 weeks.
Indian sugar prices have lost about 6 per cent on commodity bourse MCX in the last 2 weeks.
Tata Steel slumps
Shares of Tata Steel fell on worries about UK pension liabilities.
The stock fell as much as 3.97 per cent.
It ended the session down by 2.11 per cent at Rs 324.15 on the BSE.
Tata Steel has agreed to sell one of its UK plants to Greybull Capital for £1 pound but says pension liabilities remain with it.
“The extent of the pension liability to be paid by Tata will be a key determinant of economic value truly added,” HSBC says.
Edelweiss has downgraded Tata Steel to “reduce” from “hold"; it says the company will realise up to Rs 20000 crore ($3 billion) in sales of assets but that is already priced in ($1 = 66.4200 Indian rupees).
BPCL jumps to 4-month high
Shares of BPCL jumped as the board has sought shareholders’ nod for raising FII limit.
Oil refiner Bharat Petroleum Corp stock gained as much as 2.5 per cent to a 4-month high of Rs 939.80.
The stock ended up by 0.2 per cent at Rs 918.60 on the BSE.
The board had on Monday approved the proposal to seek shareholders’ consent for increasing the FII investment ceiling from 24 per cent up to 49 per cent.
It had also approves another proposal to buy Petronet India Ltd’s 26 per cent stake in Petronet CCK for Rs 78.6 crore.
BPCL is the top gainer on the S&P BSE Energy index, which is up 0.4 per cent.
TTK Prestige jumps to 3-week high
TTK Prestige soared as much as 10.3 per cent to a 3-week high as the company has bought Horwood Homewares Ltd, a table and cookware suppliers, in UK for an undisclosed amount.
The deal will help the kitchenware and appliances maker expand global operations and give access to European markets, according to a company statement.
The shares ended higher by 3.86 per cent at Rs 4,527.15 on the BSE.
The stock is down 7.3 per cent this year as of Monday’s close; it trades at 32 times one-year forward earnings.
Coal India shares down
Shares of Coal India fell on reports of price cuts.
The stock fell as much as 2.05 per cent.
At the closing trade, the stock was down 2.28 per cent at Rs 274.45.
Coal India has cut the prices of top grade coal by up to 40 per cent due to higher production and stock pile, according to media reports.
Coal prices have slumped globally in a global commodities rout.
Coal India stock is down nearly 15 per cent this year as of Monday’s close.