Cautious on urea fertilisers: P Phani Sekhar, Angel Broking

In a chat with ET Now, P Phani Sekhar, Fund Manager-PMS, Angel Broking, shares his views about fertiliser sector.

ET Now: What is it that you are picking up on the entire PSU pack as well as the entire fertiliser pack?

P Phani Sekhar: PSU is a very disparate pack, so cannot really comment on them as a homogenous group. But, I am fairly surprised actually on the movements in the fertiliser pack, because I do not see anything on the horizon that can be potentially positive for them. Of course, there is small bit of chatter that come June, there might be some increase in fertiliser prices. But, considering the way things are going in Delhi, it will be difficult for us to assume what happens in June. We have to live with what the policy is today and what it promises to be tomorrow. Since, there is no potential change out there, I would be fairly cautious on urea fertilisers. However, the other set of fertilisers, which are into DAP space such as GSFC or agrochemical space such as Rallis India look pretty interesting.