Fertiliser shares weak despite increase in subsidy

MUMBAI: Shares of fertiliser companies like Nagarjuna Fertiliser, Chambal Fertiliser, Gujarat State Fertiliser, Tata Chem weakened on the bourses in intra-day trade, even as the government announced an increase in fertiliser subsidy.

The government announced an increase in fertiliser subsidy by Rs 44,863 crore from about Rs 14,000 crore during 2008-09, in its interim budget for 2009-2010.

Analysts termed the weakness to be in line with broad market trend. "The budget has very little to cheer about so far. This has dampened sentiment," said an analyst with a domestic brokerage.

The share of Chambal Fertiliser was trading at Rs 40.80, down 3% in midmorning trade while Nagarjuna Fertiliser was trading at Rs 17.70 (3.54%), Tata Chemicals was trading at Rs 147.60 (1.11%), Gujarat State Fertiliser was trading at Rs 86.25 down 1.32% on the BSE.