Fertilizer shares in demand, zoom up to 20% amid supply worries

Select stocks have soared more than 50 per cent in the last one month riding the commodity boom.

Shares of fertilizer companies were the top outperformers of the day on the back of frenzied buying at these counters. Shares of Madras Fertilizers were locked at the 20 per cent upper limit. RCF, GSFC, National Fertilizer and Zuari Agro were up 8-13 per cent each.

Meanwhile, the BSE Sensex was up 0.35 per cent at 57,801. 

In the last one month, Madras Fertilizers has zoomed 76.7 per cent. GNFC and MP Agro have soared 54 per cent each. FACT, GSFC, RCF, National Fertilizers, SPIC, Khaitan Chemicals, Mangalore Chemicals and Rama Phosphates were the other major gainers, up over 20 per cent each.

Shares of fertilizers companies have been in demand riding the commodity boom, more so after the start of the Russia-Ukraine conflict. According to reports, prices of three main types of nutrients have been rising for several months on the back fo supply shortages and high energy prices.

On its part, the government has been monitoring the impact of the Ukraine war and would take necessary steps to ensure import from alternative sources.

Recently, the government had permitted fertilizer companies to raise output of urea manufacturing units beyond installed capacity, in order to meet shortfall.