Fertiliser stocks in demand; GSFC zooms 20%

GNFC, Chambal Fertilisers, RCF, FACT, National Fertilizers, SPIC and Zuari Agro Chemicals are up 4-10% on BSE.

Shares of fertilisers companies are in demand and trading higher by up to 20% on back of heavy volumes in otherwise weak market on the bourses.

Gujarat State Fertilisers and Chemicals (GSFC), Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), Chambal Fertilisers & Chemicals, Rashtriya Chemicals and Fertilisers, Fertiliser and Chemicals Travancore (FACT), National Fertilizers, Southern Petrochemicals Industries Corporation (SPIC) and Zuari Agro Chemicals are up 4-20% on the Bombay Stock Exchange.

With an aim to achieve sustainable growth in food production and incorporate global best practices in fertiliser usage, the centre in planning to bring out a new fertiliser policy for the country.

Ananth Kumar, Minister for Chemicals & Fertilizers, while speaking at the 4th National Conference on Agrochemicals 2014, in New Delhi last month said, the government proposes to come out with a new holistic fertiliser policy, the Business Standard report suggests.

Among the individual stocks GSFC has locked in upper circuit of 20% at Rs 88.90, extending its past four days rally on BSE, after the company said that the production at Urea - II plant got restarted on September 04, 2014.

The stock has outperformed the market by gaining 35% from Rs 65.85 on September 4, compared to a marginal 0.01% decline in benchmark S&P BSE Sensex.

The Ammonia-IV Plant which was under shut down to attend the Isothermal Shift Reactor (ISR) issue has also gone into the mainstream of production on August 31, 2014, GSFC said in a regulatory filing.

The trading volumes on the counter surge more than eight-fold with a combined 9.67 million shares changing hands on NSE and BSE till 1030 hours. There are pending buy orders for around 2 million shares.