Alkyl Amines, Deepak Nitrite, SRF, Aarti Industries shares tank up to 13% in March; here's why

Shares of chemical industry Deepak Nitrite, SRF, Aarti Industries, Vinati Organics, Gujarat Fluorochemicals, BASF India, Deepak Fertilisers and Alkyl Amines Chemicals Ltd have slipped up to 13% amid the ongoing war in the West Asia . 

Since February 28, the day when US and Israel started attacks on Iran, Alkyl Amines Chemicals stock has plunged 13%- the most among the stocks in the chemical industry.  

The fall in the stock comes amid a rise in price of crude oil. Brent crude prices reached a high of $119 per barrel as Iran and Israel continued attacking each others energy sites on Friday. 

Crude oil acts as the primary feedstock for benzene and ethylene. India is a net importer of crude oil and imports nearly 80 percent of its oil requirement. A rise in crude prices will lead to shortage of chemicals since crude oil is also transformed into different fractions, such as naphtha, diesel, kerosene, and gasoline.

Subsequently, these are used as feedstocks for numerous petrochemicals. Crude-to-chemicals technology bypasses conventional refining processes and directly converts crude oil into petrochemicals.

On similar lines, shares of Deepak Nitrite sinked 12.48%  since February 28. 

Another chemicals major SRF saw its stock slipping 3.61% in the last 20 days. 

Other losers from the chemical sector were Aarti Industries falling 6.59%, Vinati Organics losing 5.86, Gujarat Fluorochemicals falling 9%, BASF India down 4% and Deepak Fertilisers shares slipping 7.54% during the period.