As per media reports, the government is expected to offer tax incentives of 100 per cent for the first five years while the same will be limited to 75 per cent for the next five years and 50 per cent for five years thereafter. The government may also infuse capital between 10 per cent and 20 per cent.
Navin Fluorine International (Rs 1,765), Neogen Chemicals (Rs 593) and Ultramarine & Pigments (Rs 249) have hit their respective 52-week highs today.
Meanwhile, analysts at Emkay Global Financial Services expect margins of SRF/ Navin Fluorine International to remain healthy in the specialty chemical segment due to lower Fluorspar prices. Vinati Organics margins could benefit from correction in the prices of key raw materials. "Soda Ash prices started firming up on import ban from China, while lower energy costs could aid margins for Tata Chemicals and GHCL," the brokerage firm said in speciality chemicals sector update.
After falling below $20/barrel in April’20, crude prices managed to cover some ground and hovered above $40/barrel in June’20, led by tightened supply from OPEC (Organization of Petroleum Exporting Countries) and supported by encouraging economic data from the US and China. OPEC’s production in June’20 was cut to a three-decade low after Saudi Arabia reduced production by an additional 1mn bpd.
"This propelled some relief rally in various downstream products in the last two months. Gradual re-opening of economies helped bring demand back on track for around 60-70 per cent of the chemical products," the brokerage firm said.