Agriculture-linked stocks soar up to 13% post hike in minimum support price for paddy


New Delhi: Shares of corporations associated to agriculture sector surged as much as 13 % on Wednesday after the federal government hiked the minimal help worth for paddy by a document Rs 200 per quintal.

Kohinoor Meals soared 12.96 %, LT Meals 7.01 % and Chaman Lal Setia Exports 2.27 % on BSE.

Representational picture. Reuters.

Fertiliser shares additionally noticed shopping for, the place Coromandel Worldwide rose 3.33 %, Deepak Fertilisers & Petrochemicals Company 1.71 %, Rashtriya Chemical substances and Fertilisers 0.92 % and Chambal Fertilisers & Chemical substances 0.16 %.

“After an insipid begin, the market gained momentum on account of higher auto gross sales and authorities’s announcement of a rise in minimal help worth (MSP).

“Rural revenue and spending energy will improve on account of larger minimal worth and progressing monsoon which can end in larger demand for consumption-oriented shares,” mentioned Vinod Nair, Head of Analysis, Geojit Monetary Providers.

The federal government on Wednesday hiked the minimal help worth for paddy by a document Rs 200 per quintal. The cupboard has permitted the MSP of 14 kharif (summer-sown) crops for the 2018-19 season.



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