Shares of fertilizers and select agriculture companies hogged the limelight on Wednesday’s morning trade after Finance Minister Nirmala Sitharaman announced that the agriculture credit target will be increased to Rs 20 lakh crore.
Reacting to the announcement, shares of select fertiliser players including The Phosphate Company jumped around 5 per cent. Madras Fertilizers, Fertilizers and Chemicals Travancore, Pradeep Phosphates and Zuari Agro also rallied up to 4 per cent in the morning trade.
Some of the agri-related players including Kaveri Seed Company traded 3.54 per cent higher at Rs 545 at around 11.55 am (IST). The scrip opened at Rs 539.95 and touched a high and low of Rs 546.80 and Rs 522.60 respectively. So far 9,997 shares were traded on the counter on the BSE. Jain Irrigation Systems was up 1.13 per cent at Rs 31.20. Meanwhile, the BSE Sensex traded 568 points, or 0.95 per cent, higher at 60,118 at around the same time.
The finance minister further said that the PM Promotion of Alternate Nutrients for Agriculture Management (PRANAM) Scheme will also promote the balanced use of fertiliser.
Adhil Shetty, CEO and Co-founder of BankBazaar.com and Co-Chair of the FICCI Fintech Committee, said, "The agri credit outlay and the digitisation of agri credit societies reiterate that credit access is key to economic growth. This is as true for agriculture as it is for industry and retail credit. Greater digitisation improves access to credit."
S Ranganathan, Head of Research, LKP Securities said, “In keeping with its focus on inclusive growth, the Union Budget has hiked outlays on infrastructure and agriculture which in our view would have a force multiplier impact on the economy.”
Stocks of airport infrastructure providers also jumped after the FM announced that the government will set up 50 additional airports, heliports and aerodromes. GVK Power & Infrastructure traded at Rs 2.81, up 3.31 per cent against its previous close of Rs 2.72 on the BSE. GMR Airports Infrastructure was up 1.95 per cent at Rs 39.15.
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