Fertilisers stocks alert! BUZZING due to this step by government - Chambal, Deepak, GSFC hit 52- week high
Fertiliser stocks on the exchanges gain as the government hiked its share of subsidy for di-ammonia phosphate (DAP) by 140 per cent from Rs 500 to Rs 1,200 per bag. In this regard, GSFC, Deepak Fertiliser, and Chambal Fertiliser hit a new 52-week high on the BSE intraday on Thursday.
Fertiliser stocks on the exchanges gain as the government hiked its share of subsidy for di-ammonia phosphate (DAP) by 140 per cent from Rs 500 to Rs 1,200 per bag. In this regard, GSFC, Deepak Fertiliser, and Chambal Fertiliser hit a new 52-week high on the BSE intraday on Thursday.
Despite the rise in international market prices of DAP, it has decided to continue selling it at the older price of Rs.1200 and the central government to bear all the burden of price hike, Prime Minister Office said in a statement.
The government has hiked the subsidy due to the rising prices of phosphoric acid, ammonia among others internationally. The amount of subsidy per bag has never been increased so much at once.
GSFC grew around six percent, to touch a new 52-week high at Rs 124.7 per share on the BSE intraday on Thursday open. The stock, at around 01:25 pm, is up over three and a half per cent at Rs 122.05 per share, which is near to the day’s high.
Similarly, Chambal Fertiliser and Chemicals grew by over nine per cent, to touch a fresh 52-week high at Rs 310 per share on the BSE intraday on Thursday early trade. At 01:25 pm, the stock is trading over six per cent at Rs 290 per share, near the day’s high level.
While Deepak Fertilisers and Petrochemicals Corporation, which closed at Rs 288 per share level, also rose over nine per cent on the BSE intraday on Thursday early trade. The stock is up around three per cent at Rs 296 per share at around 01:25 pm.
Other fertiliser stocks such as RCF (Rashtriya Chemicals & Fertilizers) jumped over five per cent on the back of subsidy news at Rs 88 per share intraday, which is a day’s high. While GNFC is trading almost flat but positive at Rs 390 per share.
All major fertiliser companies, including the biggest player -- Iffco, had hiked DAP rates along with prices of other complex fertilisers in the last few months. This followed a 60 to 70 per cent rise in international prices of phosphoric acid and ammonia, which are key components for DAP.
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