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    India's chemical makers may gain from China virus scare

    Synopsis

    This month’s reduction in the U.S.-China trade tensions has improved the outlook for profit margins and exports at Indian manufacturers after a tepid 2019, the analysts said.

    Bloomberg
    By Ravil Shirodkar

    The worsening coronavirus crisis has emerged as a threat to global economic growth. But if it leads to disruption in production of chemicals in China’s Hubei province, the epicenter of the outbreak, then it may benefit Indian manufacturers, according to JM Financial.

    Six Indian chemical stocks tracked by the brokerage -- Galaxy Surfactants Ltd., Fine Organic Industries Ltd. , Navin Fluorine International Ltd., SRF Ltd., PI Industries Ltd. and UPL Ltd., have beaten the market in recent years, helped by robust growth in end-user industries and exports to China, which has closed many chemical facilities on environmental concerns.

    This month’s reduction in the U.S.-China trade tensions has improved the outlook for profit margins and exports at Indian manufacturers after a tepid 2019, the analysts said. India’s chemicals shipments increased at about 21% annually between 2014 and 2018 before moderating last year due to the trade war and slower economic growth, they wrote.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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