The shares of Tata Chemicals slipped over 9 per cent today, in line with the market's negative global cues. The shares of the leading global chemical player fell after markets fell worldwide due to fears of a recession. Tata Group has operations across the US Tata Chemicals North America UK Tata Chemicals Europe Kenya Tata Chemicals Magadi and South Africa Tata Chemicals South Africa Tata Chemicals South Africa Tata Chemicals stock fell 8.92 per cent to Rs 1,033 against the previous close of Rs 1,134. 20 on the BSE.
Tata Chemicals shares are trading higher than 50 day, 100 day and 200 day moving averages, but are lower than 5 day and 20 day moving averages. The firm's shares changed hands in total of 1.46 lakh, which is a turnover of 15.44 crore on the BSE. On BSE, the firm's market cap fell to Rs 26,920 crore. The large cap stock has gained 17.91 per cent in a year and increased 16.8 per cent in 2022.
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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In the near term, Kotak Institutional Equities expects to see a lot of pressure on agrochemical sales volume both in India and international markets. Excessive and unseasonal rainfall in India, leading to crop damage, probably points to a challenging 2QFY 23 for the domestic agrochemical market. The dry weather in parts of the world including Europe and the US will be a major factor in volume growth, according to Kotak Equities in mid-September.
Abhijeet of Tips 2 Trade said that bearish global sentiment fueled by low growth high inflation has resulted in a shrinking demand margins for all chemical stocks including Tata Chemicals. The support of Rs 1010 remains strong. Only if daily charts close to a green candle near Rs 1010, investors should start buying.