After an attractive recovery in prices and demand in Apr-May'09 period, June'09 witnessed weakness in prices. Products reporting fall in prices increased sharply to 14 in June'09 from 7 in May'09 with the average fall in prices at 16.4% (5.1% in May'09). Out of 33 products, only 5 products reported increase in prices with an average increase of 4.7%. Imports remained active in May-June'09 keeping the domestic prices under pressure. Sectors like textile and paints saw weak demand while agro chemicals and pharma sector saw boost in demand. Stocking at dealers level has come down due to uncertainty before the budget. Various industry players expect peak excise duty to increase from the present 8% to 12%. We expect demand from construction, paints etc to gain momentum from August'09 resulting in an improved price scenario.
| Company | CMP | TP | Reco |
| CFL | 192 | 263 | Buy |
| DFPCL | 94 | 103 | Hold |
| GNFC | 88 | 76 | Buy |
| GSFC | 176 | 107 | Hold |
| TCL | 225 | 192 | Reduce |
Prices as on 29th June 2009
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