Govt move to clear fertiliser firms' subsidy arrears gets tepid response

Combined market capitalisation of 10 fertiliser companies up 10% in Nov, against 12% rise in Sensex

The central government’s recent move to clear subsidy arrears of fertiliser companies has failed to fire up these firms’ stock prices as was expected initially.

While fertiliser stocks have done relatively better than the benchmark BSE Sensex in the last two weeks, the industry performance is in line with the movement in the broader market on a month-to-date basis. The combined market capitalisation of 10 fertiliser makers in Business Standard’s sample has risen 10 per cent so far in November against 12 per cent appreciation in Sensex during the period. (See the adjoining charts).

Two weeks ago, Finance Minister Nirmala Sitharaman announced