Alkyl Amines shares surge over 18% amid spike in trading volume, here is why

Shares of Alkyl Amines, the country's leading chemicals maker, rose as much as 18.95% to hit an intraday high of ₹1,474 on the National Stock Exchange (NSE) on Tuesday, March 24. On the BSE, Alkyl Amines shares advanced as much as 18% to hit an intraday high of ₹1,471.90 amid spike in trading activity.

Alkyl Amines Chemicals shares came under buying interest on hopes of easing tensions in the Middle East after United States President Donald Trump on Monday said that United States has talked with Iran about a possible end to their war, analysts noted.

“I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump said on Truth Social.

Trump also said on Monday that he is postponing attacks on Iranian power plants for five days to allow talks to continue.

Last week, Alkyl Amines informed exchanges that it was facing difficulties in procuring ammonia due to the ongoing geopolitical conflict in the Middle East.

"The disruption has impacted the availability of Liquefied Natural Gas (LNG), which is a critical input for the production of Ammonia. Consequently, several Ammonia manufacturers have indicated their inability to supply the product during this period due to Force Majeure conditions," Alkyl Amines had said in an exchange filing last week.

The company had to temporarily suspend the manufacturing at its Patalganga, Kurkumbh and Dahej sites as it faced challenges in procuring Ammonia, a key raw material used in the manufacture of Methylamines, Ethylamines and their derivatives.

Reports of easing tensions in the Middle East led to the stock coming in very high demand as the trading activity picked up pace.

Trading volume on the NSE spiked by 4.3 times to 3.85 lakh shares compared with an average trading volume of 88.979 shares.

As many as 79,000 shares changed hands on the BSE compared with an average of 4,164 shares traded daily in the past two weeks.

As of 2:23 pm, Alkyl Amines shares traded 14.75% higher at ₹1,422, outperforming the NIFTY 500 index which was up 2.2%.