Some sectors have a company which though may not be called as bellwether but it is good enough to give an indication of what it might be in that sector and that is why its results of that company probably are indicative of what is happening in the sector. Sumitomo chemicals announced its Q1 results and what is interesting is that it gave the following statement in its investor’s presentation. “The favorable market sentiments and stable input costs has been the primary growth driver for our business in Q1FY25. The company has demonstrated strong recovery in the domestic market, leading to our optimism for FY25, considering FY23-24 challenges are largely behind us especially in the domestic market. The price volatility observed last year has stabilized to a great extent. Also, the sentiment among our channel partners and farmers is turning positive. Our outlook remains cautiously optimistic, contingent on rainfall patterns in the coming months of August and September.” Now this is good enough reason to bring them on the watch list and look out for further confirmation from other companies to see if their bad times are over.
