Shares of Tata Chemicals slipped over 9 per cent today in line with broader markets amid negative global cues. The shares of the leading global chemical player fell after markets tanked worldwide on fears of recession. Apart from India, the Tata Group firm has operations spread across US (Tata Chemicals North America), UK (Tata Chemicals Europe), Kenya (Tata Chemicals Magadi) and South Africa (Tata Chemicals South Africa). Tata Chemicals stock fell 8.92 per cent intraday to Rs 1,033 against the previous close of Rs 1,134.20 on BSE.
Tata Chemicals shares are trading higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Total 1.46 lakh shares of the firm changed hands amounting to a turnover of Rs 15.44 crore on BSE. The market cap of the firm declined to Rs 26,920 crore on BSE. The large cap stock has gained 17.91 per cent in a year and risen 16.8 per cent in 2022.
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The stock hit a 52-week high of Rs 536.50 on November 17, 2021 and a 52-week low of Rs 316 on September 24, 2021.
The outlook for Indian chemicals players does not look good.
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Kotak Institutional Equities expects some pressure on agrochemical sales volumes in the near term both in India and in international markets. Excessive and unseasonal rainfall in India, leading to crop damage, probably points to a challenging 2QFY23 for the domestic agrochemical market. “Meanwhile, dry weather in parts of the world including Europe and the US will be a headwind for volume growth in those markets,” said Kotak Equities in mid-September.
Abhijeet from Tips2Trade said, “Bearish global sentiment powered by low growth & high inflation has led to an expectation of shrinking demand & margins for all chemical stocks including Tata Chemicals. Rs 1010 remains a strong support now. Investors should start buying only if daily charts close with a green candle near Rs 1010.”
