Impact on Fertilizer and Pharma Sector: Budget’16

images-2-1FERTILIZER SECTOR: In this year budget 2016, the govt. proposed doubling of rural income through agriculture welfare by 2022, says finance minister. Allocations to farm sector to tall Rs 35,984 crore in FY2017. The govt plans to launch new farm irrigation fund through NABARD, initial corpus is Rs 20,000 crore. Rs 5,500 crore has been allocated for crop insurance scheme. Agriculture-linked stocks surge up to 7%.

Advantage:  Insecticides India, Bayer Crop Sciences, PI Industries, Sharda Crop, United Phosphorous, Punjab Chemicals surge up to 12%.

 PHARMA SECTOR: In the union budget the finance minister proposed to open over 3000 generic drug centers which are a big push for the Indian pharma industry.

 Watch out: Generic drug makers like Aurobindo Pharma, Dr.Reddy’s Lab, Opto Circuit, Merck rally up to 4%.

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