Fertiliser Stocks Rally On Subsidy Extension
Nagarjuna Fertilisers, National Fertilizers and Rashtriya Chemicals were among the top gainers.
Shares of the fertiliser companies rose after the Cabinet Committee on Economic Affairs approved an extension of the urea subsidy until 2020.
Urea subsidy has been extended for three years at an estimated cost of Rs 1.64 lakh crore, according to the government's press release after the meeting of CCEA yesterday. Along with this, CCEA has also approved the usage of Direct Benefit Transfer scheme for the disbursement of the fertiliser subsidy.
“Continuation of the urea subsidy scheme will ensure that adequate quantity of urea is made available to the farmers at statutory controlled price,” the release added.
Among the top gainers: Nagarjuna Fertilisers jumped as much as 10.5 percent to Rs 18.45; National Fertilizers rose 8.1 percent to Rs 60.8 and Rashtriya Chemicals gained as much as 6.9 percent to Rs 81.7 in early trade.
Other Gainers:
- Madras Fertilizers up 4.88 percent.
- Chambal Fertilisers up 1.60 percent.
- Fertilisers & Chemicals Travancore up 4.41 percent.
- Zuari Agro Chemicals up 3.24 percent.
- Southern Petrochemical Industries up 2.46 percent.
- Mangalore Chemicals & Fertlisers up 2.40 percent.
- Gujarat Narmada Valley Fertilizers & Chemicals Ltd. up 2.80 percent.