However, the rally at these counters is not supported by fundamentals as there is hardly any improvement in the business confidence. Nevertheless, the current rally in these stocks provide an opportunity for investors to exit from these stocks.

Stock of both the organic as well as inorganic segment of the chemical industry have been moving up. Names like Ashok Alco, Graur & Weil, Himadri Chemicals, Orient Carbon & Chemicals, Savita Chemicals, Shasun Chemicals, Aluflorides, Avon Organic, Thirani Chemcials and Indo Borax figure in the list of new highs. The chemical industry has been hit by lower capacity utilisation as the global prices of chemicals (both organic and inorganic) have been falling. Production of certain chemicals like benzene, acetone, phenol, soda ash, calcium carbide has fallen in fiscal 1998-99 and there is hardly any sign of a revival in the first-quarter of the current fiscal as well. The downtrend in the production is mainly to due to global recession, bottlenecks in the domestic industry and lack of parity in customs and excise duties.