GSFC sees profit taking after Monday's 10% rally
GSFC is India's largest producer of caprolactam — a derivative of benzene — which is used for manufacturing nylon.
By ETMarkets.com |
NEW DELHI: The counter of Gujarat State Fertilisers & Chemicals ( GSFC) saw profit booking after rising nearly 3 per cent in morning trade on Tuesday.
The stock surged on Monday following a rise in the prices of caprolactam –a chemical used for manufacturing nylon fibres and textiles.
GSFC is India's largest producer of caprolactam — a derivative of benzene — which is used for manufacturing nylon. It is one of the only two manufacturers of the chemical in India with 70,000-80,000 tonnes of annum production, of which around 17,000 tonnes is used internally for producing of nylon and the rest is sold.
The stock rose 2.87 per cent to hit a high of Rs 98.30 on BSE, before retreating a bit. At 11.05 am, the stock was trading flat at Rs 95.60. The scrip had rallied 9.55 per cent in the preceding session and 29 per cent in the past one quarter.
Caprolactam prices are hovering at a two-year high of approximately $1,830 per million tonnes, thanks to shutting down of capacities in Europe and America.
The subsidy payment from the government has also picked up to Rs 1,285 crore in FY17 till October 1 versus Rs 635 crore a year ago.
The stock surged on Monday following a rise in the prices of caprolactam –a chemical used for manufacturing nylon fibres and textiles.
GSFC is India's largest producer of caprolactam — a derivative of benzene — which is used for manufacturing nylon. It is one of the only two manufacturers of the chemical in India with 70,000-80,000 tonnes of annum production, of which around 17,000 tonnes is used internally for producing of nylon and the rest is sold.
The stock rose 2.87 per cent to hit a high of Rs 98.30 on BSE, before retreating a bit. At 11.05 am, the stock was trading flat at Rs 95.60. The scrip had rallied 9.55 per cent in the preceding session and 29 per cent in the past one quarter.
Caprolactam prices are hovering at a two-year high of approximately $1,830 per million tonnes, thanks to shutting down of capacities in Europe and America.
The subsidy payment from the government has also picked up to Rs 1,285 crore in FY17 till October 1 versus Rs 635 crore a year ago.
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