Uptrend intact in GNFC, Coromandel, Madras Fertilizers; may gain up to 16%

Fertilizer shares have been the outperformers so far in 2022, gaining up to 100%; While the bullish sentiment seems overrated, charts indicate continuation of the uptrend.

Shares of fertiliser-related companies were in focus on today after the government on Wednesday approved a subsidy of Rs 60,939.23 crore for non-urea fertilisers for the first six months of FY23. The said move would enable companies to continue selling the vital soil nutrients at affordable rates to farmers.

Earlier, this month, fertiliser companies had raised DAP prices by Rs 150 per bag from Rs 1,200 to Rs 1,350. After today's support, companies will be able to sell one bag of Di-Ammonia Phosphate (DAP) at Rs 1,350 because the Centre will absorb the remaining cost of the same, estimated to