Strong Rabi season offtake helps fertilizer stocks extend gains

Shares buck the market trend, advance between 3 to 8 per cent on Thursday

Shares of fertiliser companies extended their gains as the Street remains optimistic of higher offtake during the ongoing rabi season. Encouraged by abundant rainfall and higher soil moisture, farmers have started sowing rabi crops at a brisk pace this year, covering four per cent more area by November end than in the whole of the previous season.

Reservoir levels are estimated to be 19 per cent higher than the average of the last five years. This is seen aiding volumes of fertiliser companies, according to analysts. “Good water levels aided by beneficial monsoon along with good moisture availability in soil have