Why did the shares of Deepak Nitrite fall so sharply on Friday?

On Friday, Deepak Nitrite fell 5% but that was due to a fire at the Nandesari, GIDC plant in Vadodara. This was after a series of five chemical blasts on Thursday. Not much of details were available and there has been no official statement on the extent of losses. The fire occurred at around 6 pm at the plant. The company has confirmed that there were no human casualties and those who had sustained injuries were being treated.

The cause of the fire is not yet known and the plant is expected to resume normal operations in the next couple of days. The stock is already down nearly 30% from its recent peak in October last year. Like most of the specialty chemicals companies, Deepak Nitrite has also been subjected to sharp input cost spikes.