Tailwinds, hopes from Budget 2018 spark a fertiliser rally

Roll-out of direct benefit transfer and higher farm realisations should boost demand

Even as the broader markets have been weak over the past few days, shares of fertiliser companies have been making smart gains on brokerage upgrades and growth expectations. Government-owned National Fertilizers, Rashtriya Chemicals & Fertilizers, and Fertilizers and Chemicals Travancore led the rally, gaining up to 10 per cent on Wednesday. Among others, Coromandel International and Chambal Fertilisers and Chemicals were up two-five per cent.
 
The government’s decision to increase net additional spending in FY18 by Rs 333.80 billion, which includes Rs  203.52 billion for the fertiliser sector, boosted the sentiment for PSU stocks. The money will clear liabilities