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BASF profit warning rubs off on Indian chemical stocks; Aarti Industries, UPL down about 3%

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Shares of Indian chemical companies like Aarti Industries, SRF and UPL fell on Tuesday after German chemical giant BASF issued a profit warning.

BASF profit warning rubs off on Indian chemical stocks; Aarti Industries, UPL down about 3%
Shares of Indian chemical companies like Aarti Industries, SRF and UPL fell on Tuesday after German chemical giant BASF issued a profit warning.
On Monday, BASF cut its full-year forecast and also warned that profits may fall by as much as 47 percent in the second quarter of the calendar year 2019, citing the US-China trade war and weakness in the automobile sector.
With market leader BASF issuing a profit warning, it's likely to have a ripple effect on Indian chemical companies, which are increasingly helping global chemical majors reduce costs through outsourcing and process engineering.
BASF is a leading procurement partner for a lot of Indian chemical companies. Aarti Industries gets 7 percent of its total revenues from BASF while SRF exports a lot of its products to BASF. Leading agrochemical company, UPL also felt the jitters as it is one of the major competitors post its acquisition of Arysta LifeScience.
Mirroring the concerns, shares of Aarti Industries were down 3 percent to Rs 1,690, SRF lost 0.75 percent to Rs 2,863 while UPL dropped 3.7 percent to Rs 637.65.
The chemical intermediary export market has a size of $430 billion and India has gained share in global chemical exports to 4.5 percent from 3.3 percent.

Market Movers

CompanyPriceChange%Gain
Adani Ports694.35 47.45 7.33
Bajaj Auto4,167.10 113.20 2.79
HUL2,482.90 65.20 2.70
Bharti Airtel538.75 10.10 1.91
Grasim1,480.75 22.55 1.55
CompanyPriceChange%Gain
HUL2,480.75 63.85 2.64
Bajaj Auto4,164.95 105.95 2.61
Bharti Airtel538.90 10.20 1.93
Bajaj Finserv11,998.00 179.95 1.52
IndusInd Bank994.90 10.65 1.08
CompanyPriceChange%Gain
Adani Ports694.35 47.45
Bajaj Auto4,167.10 113.20
HUL2,482.90 65.20
Bharti Airtel538.75 10.10
Grasim1,480.75 22.55
CompanyPriceChange%Gain
HUL2,480.75 63.85
Bajaj Auto4,164.95 105.95
Bharti Airtel538.90 10.20
Bajaj Finserv11,998.00 179.95
IndusInd Bank994.90 10.65

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CompanyPriceChng%Chng
Dollar-Rupee73.8600-0.2175-0.29
Euro-Rupee87.8770-0.4200-0.48
Pound-Rupee102.2970-0.9290-0.90
Rupee-100 Yen0.6699-0.0019-0.29