Budget 2022: Fertiliser stocks on roll as government mulls to increase Rs 1.4 lakh crore subsidy; scrips gain up to 15%
Fertilizers stocks during Tuesday’s session were on a roll, as the government is mulling around $19 billion (Rs 1.4 lakh crore) fertilizer subsidy in Budget 2022. The stocks surged up to 15 per cent on the BSE intraday trade today.
Fertilizers stocks during Tuesday’s session were on a roll, as the government is mulling around $19 billion (Rs 1.4 lakh crore) fertilizer subsidy in Budget 2022. The stocks surged up to 15 per cent on the BSE intraday trade today.
Individually, Khaitan Fertilizer surged over 15 per cent to Rs 105.5 per share, followed by Fertilizer and Chemical Travancore up over 9 per cent to Rs 160 per share and Madras Fertilizer gained over 7 per cent to Rs 39.45 per share; these stocks have also touched a new 52-week high on the BSE. The first stock closed over 8 per cent, while the other closed flat with positive and negative bias respectively.
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While other fertilizer stocks such as Madras Fertilizer, Gujarat State Fertilizer and Chemicals, Naitional Fertilizer, Rashtriya Chemical Fertilizer, and Nagarjuna Fertilizers and Chemicals each gained between 1-6 per cent intraday on the BSE in the otherwise weak market on Tuesday. Except Nagarjuna Fertilizers, which ended over 4 per cent, all other above stock closed flat.
According to multiple media reports that cited Bloomberg, “The finance ministry has drafted around Rs 1.4 lakh crore ($18.8 billion) as fertilizer subsidy in the Budget 2022, which is scheduled to be presented on February 1, due to higher raw material costs.”
Five states, including Uttar Pradesh, are scheduled to go for polls earlier this year and this move is said to placate the farmers, after revoking the three-farm law bills last year, the report said.
The rise in the fertilizer subsidy may help the fertilizer companies to recover the volumes lost last year amid the rising input cost, the market experts believe. The increase in subsidy will also help the farmers to bear the price hikes undertaken by fertilizer companies to mitigate input cost, they add.
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04:03 PM IST