Fertiliser stocks gain ground as monsoon advances

It is that time of the year when fertiliser companies generally look skyward. For a good monsoon means good sales for these companies. While the monsoon is on more than expected lines, reports that the PMO wants gas allocated to the fertiliser industry on a priority basis has come as a shot in the arm for the fertiliser sector.

This comes amid the much-debated issue of gas allocation from Reliance Industries’ KG basin, which is currently before the court. The petroleum ministry is currently deliberating on whether it should take its share of profits from the KG basin oilfields in cash or in kind. Stocks like RCF, Chambal Fertilisers, Deepak Fertilisers, Gujarat Narmada Valley Fertilisers, Madras Fertilisers and Nagarjuna Fertilisers all gained ground on Tuesday.