Monsoon forecast ups Escorts,M&M stock

Shares of tractor makers witness frenzied buying by the investors and jumped by nearly 5 per cent.

Shares of tractor makers on Wednesday witnessed frenzied buying by the investors and jumped by nearly 5 per cent on the NSE,led by Mahindra & Mahindra,buoyed by forecast of a normal monsoon this year.

The scrip of tractor maker Escorts rose by 4.49 per cent to close the day at Rs 137.40 on the National Stock Exchange (NSE). In intra-day trade,the stock had gained 6.46 per cent to touch a high of Rs 140.

Similarly,the counter of Mahindra & Mahindra (M&M) saw heavy buying and climbed by 4.96 per cent to close the day at Rs 762 on hopes that a good monsoon will increase demand for tractors.

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Among the fertiliser companies,Rashtriya Chemicals and Fertilizers Limited ended 0.95 per cent higher at Rs 85.35,while National Fertilizers settled 1.65 per cent up at Rs 107.65.

Market players attributed rise in the stock prices of these companies to across-the-board buying by the investors driven by the positive monsoon forecast.

India Meteorological Department (IMD) had on Tuesday forecasted normal monsoon season this year with the country likely to receive 98 per cent rain of the Long-Period Average (LPA).

Meanwhile,the NSE 50-share Nifty finished the day at 5,851.65,up by 110.90 points,or 1.93 per cent.