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Shares of fertiliser companies surged on Wednesday on expectations that the newly formed government had prepared a map on subsidy rationalisation for the fertiliser companies.
Analysts said the markets expected the new government would clear the fertiliser subsidy bill for the 2014 financial year.
Stocks were up in the range of 3-10 per cent during the day. National Fertilizers gained the most at 10 per cent. The stock, which hit the upper circuit on opening, closed at Rs 44.9 a share.
Heavy buying was seen throughout the day, said dealers. According to analysts, further buying could be seen if any more clarification on the matter is issued by the government.
The second highest gainer was Gujarat Narmada Valley Fertilizers & Chemicals, which was up 8.2 per cent to close at Rs 101.65 a share.
Other stocks which rose during the day include Rashtriya Chemicals & Fertilizers (RCF) and Chambal Fertilizers, up six and 6.4 per cent each. RCF closed the day at Rs 59.2 a share, while Chambal Fertilizers closed at Rs 52.8. Gujarat State Fertilizers & Chemicals was up five per cent to end at Rs 79.90 a share while Tata Chemicals was up 1.8 per cent to close at Rs 318.45 a share.
