Fertilizer stocks including market leader Tata Chemicals and Chambal Fertilizers soared up to 11 per cent in the last seven days amid better-than-expected rains.
From August 27 to September 3, shares of the Tata group diversified firm Tata Chemicals zoomed by about 7.63 per cent, with the counter touching a 52-week high of Rs 413.90 on the Bombay Stock Exchange in the last trading session.
"A spurt in the fertilizer stocks was buoyed by a good monsoon and hopes of allocation of extra natural gas from the government," Ashika Stock Brokers Research Head Paras Bothra said.
According to media reports, the government may likely allocate about 17.5 million metric standard cubic metres (mmscmd) extra natural gas a day every year to fertilizer producers over the next few years. As of now, the fertilizer sector gets about 40 mmscmd annually.
The maximum gain was witnessed in the shares of Chambal Fertilizers, which jumped by a whopping 10.56 per cent during the period under review. The scrip climbed to a month high of Rs 74.15 as on Friday.
"Better than expected monsoon boosted the investors sentiment towards the fertilizer stocks and the shares gained on fresh buying interest," CNI Research CMD Kishore P Ostwal said.
Deepak Fertilizers was another counter, which touched a year high of Rs 178.20 in the last trading session. The scrip rallied nearly 10 per cent during the week.
Shares of National Fertilizers and Rashtriya Chemicals & Fertilizers also sparkled in the last week, marking a rise of 7.37 and 7.06 per cent, respectively.
Among other gainers were---Nagarjuna Fertilizers (5.68 per cent) and Gujarat State Fertilizers & Chemicals (2.17 per cent).
However, Jain Irrigation bucked the trend and ended the week with a loss of over 3 per cent at Rs 1,205.35. The scrip had hit a year high of Rs 1,322.85 on August 9 but declined in the later part of the month as the investors booked profits.
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