Fertilizer stocks gain as Skymet predicts normal monsoon for 2018

Monsoon in India is expected to remain normal at 100% of long period average (LPA) (for a four-month period from June to September) of 887mm, as per Skymet's forecast.

Apr 04, 2018 05:04 IST India Infoline News Service

Monsoon in India is expected to remain normal in 2018 at 100% of long period average (LPA) (for a four-month period from June to September) of 887mm, as per a forecast issued by Skymet Weather.

Monsoon probabilities for June to September period, according to Skymet, are as follows:
  • 5% chance of excess (rainfall more than 110% of LPA)
  • 20% chance of above-normal (rainfall between 105% to110% of LPA)
  • 55% chance of normal (rainfall between 96% to 104% of LPA)
  • 20% chance of below-normal (rainfall between 90% to 95% of LPA)
  • 0% chance of drought (rainfall less than 90% of LPA)
Reacting to this news, shares of fertilizer companies soared on the exchanges as the demand for fertilizers and agri-inputs is highly correlated with the level of monsoon rainfall. Shares of Deepak Fertilizers & Petrochemicals, Fertilizers and Chemicals Travancore (FACT), and Rashtriya Chemicals & Fertilizers were up 8.01%, 0.71%, and 0.85%, respectively, at 11.13 am on the BSE.

Related Story