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India s Fertiliser Subsidy Bill In FY 21-22 Set To Soar By 62% Driven By Unprecedented Rise In Natural Gas Prices, Estimated At Rs 1 3 Lakh Crore

India s Fertiliser Subsidy Bill In FY 21-22 Set To Soar By 62% Driven By Unprecedented Rise In Natural Gas Prices, Estimated At Rs 1 3 Lakh Crore
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fertiliser stocks: Fertiliser stocks may get a re-rating with price hikes a possibility

Fertiliser stocks may get a re-rating with price hikes a possibility Expectations of a normal monsoon for the third consecutive year could boost demand for complex fertilisers. Companies in the segment could pass on the increase in higher input costs to maintain margins, said analysts. Synopsis Early in April, the government told fertiliser companies to roll back the hike in maximum retail price (MRP) of non-urea fertilisers after some firms raised prices. With state elections out of the way, investors are betting that prices will be increased. Shares of Chambal Fertilisers and National Fertilizers rallied over 10 per cent on Wednesday while most of the other fertiliser stocks gained between 5 per cent and 10 per cent.

Agriculture Related Shares News: Tractor Makers, Fertiliser Shares Gain On Prediction Of Normal Monsoon Rains

Monsoon rains will hit tip of Kerala around June 1 and retreat by September. Shares of agriculture-related companies gained after the weather department predicted normal monsoon rains for the current year raising expectations of higher farm output and rural incomes. Shares of tractor makers Mahindra & Mahindra advanced as much as 3.68 per cent and Escorts advanced 3.2 per cent. Fertiliser makers were also witnessing buying interest after weather department s comments on monsoon normal rainfall. Shares of National Fertilisers advanced as much as 4.47 per cent, Tata Chemicals rose 1.8 per cent, GNFC rose 3.2 per cent, GSFC climbed 3.2 per cent, Deepak Fertilisers added 2 per cent and Zuari Global rose 2.8 per cent.

Spike in fertiliser sales boosts prospects for Coromandel International

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Agri-related stks in focus; FACT, Madras Fertilizers hit 20% upper circuit

Shares of agri-related companies, including agrochemicals and fertilisers, were in focus as demand for the procurement of fertilizers has been promising due to surplus reservoirs levels, record-high Kharif crop sowing and plentiful rainfall during the monsoon season. Among individual stocks, Fertilizers & Chemicals Travancore (FACT) and Madras Fertilizers were locked at 20 per cent upper circuit limits at Rs 76.05 and Rs 25.65, respectively. These stocks are also quoting at their 52-week high levels. That apart, Southern Petrochemicals, Zuari Global, Deepak Fertilisers & Petrochemicals Corporation and Rashtriya Chemicals & Fertilisers (RCF) from the fertilizers sector rallied up to 12 per cent on the BSE. PI Industries, UPL and Rallies India from the agrochemicals sector jumped between 4 per cent and 6 per cent on the BSE. In comparison, the S&P BSE Sensex was up 1 per cent at 48,575 at 01:14 pm.

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