Stocks in the chemical industry promise shares in firms dealing with the chemical industry, which is quite broad in nature. Firms engaged in basic chemicals have a line of manufacture including petrochemicals, fertilizers, and industrial gases that are brought into use by industries such as plastics and pharmaceuticals. Specialty chemicals, higher-value chemicals, are loaded with components for electronic chemicals and personal care products.
The chemical industry is highly cyclical, meaning the performance cycle of this business often goes hand in glove with world economic conditions. Where demand for chemicals surges as industries linked to construction and automotive expand in an expanding economy, the opposite is often true when the economy contracts.
Interestingly, over the ground economic period of 2016-2019, the Indian chemical industry achieved a CAGR of 17%, which is indicative that during tough times, though production gets reduced, being essential products, companies remain resilient.
It is very important for investors to be able to fathom the cyclical nature of chemical stocks and study them properly before investing in them. Some top chemical stocks in India include:
Top Chemical Stocks in India
- Fertilisers And Chemicals Travancore Ltd
- Linde India Ltd
- Deepak Nitrite Ltd
- Alkyl Amines Chemicals Ltd
- Solar Industries India Ltd
- SRF Ltd
- Navin Fluorine International Ltd
- PI Industries Ltd
- Balaji Amines Ltd
- Deepak Fertilisers and Petrochemicals Corp Ltd
For those interested in the penny stocks of the chemical sector:
- Paradeep Phosphates Ltd
- National Fertilizers Ltd
- Sadhana Nitro Chem Ltd
- Bhansali Engg Polymers Ltd
Note: All the above information is for educational purposes. None of the information shared should be treated as investment advice. Please perform your own research or seek guidance with a financial advisor before making any investment decisions. For live chemical stock prices and updates on markets, consider services such as Smallcase.
This is one important reason why ready-made portfolios like Smallcase have now become an easy avenue for investors in today’s scenario to create and maintain a diversified investment portfolio without the hassle of individual stock selection and rebalancing.
Disclaimer: The information realized in this document is informational and shall not be treated or considered as financial advice. Data and figures range based on publicly available market information, and may change. All investment decisions should, therefore, be done after further research, consultation with financial advisors, and considerations of individual investment goals and risk tolerance. The following information in this article is not intended to encourage one to make an investment decision but for informational purposes alone. Consequently, neither the author nor the publisher accepts any responsibility for any investment decisions based on information outlined in this article. Data as of Sept 14, 2024.
