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Shares of fertilizers companies are in demand, trading higher by up to 20% on back of heavy volumes on the bourses.
Zuari Agro Chemicals, Rashtriya Chemicals and Fertilisers (RCF), National Fertilisers, Fertilizers and Chemicals Travancore (FACT), Gujarat State Fertilisers and Chemicals (GSFC), Chambal Fertilisers & Chemicals and Southern Petrochemicals Industries Corporation (SPIC) are up 3-20% on the Bombay Stock Exchange (BSE).
According to PTI reports, the Fertilizer Ministry has invited fresh proposals for setting up urea plants as well as increasing the capacity of existing ones under the recently notified New Urea Investment Policy for increasing domestic production.
According to the policy, interested private companies are required to give a bank guarantee of Rs 300 crore for every project, although PSU firms have been exempted from it.
The companies will get a subsidy only if urea production starts in the next 5 years, and it will continue till 8 years after the commencement of production, added report.
Among the individual stocks, Zuari Agro Chemicals has locked in upper circuit of 20% at Rs 299 on BSE. A combined 387,151 shares changed hands and there are pending buy orders for nearly 18,000 shares on NSE and BSE at 1448 hours.
Since October 28, the stock zoomed 50% from Rs 199, after reporting a net profit of Rs 22 crore for the quarter ended September 2014 (Q2) against net loss of Rs 39.80 crore in the same quarter last fiscal.
RCF surged 13% to Rs 68 on back of an over five-fold jump in trading volumes. A combined 10.68 million shares changed hands so far against an average sub one million shares that were traded daily in past two weeks on BSE and NSE.
Deepak Fertilisers and Petrochemicals however, dipped 8% to Rs 144 after reporting a sharp 78% year-on-year decline in net profit at Rs 10 crore in September quarter.
Zuari Agro Chemicals, Rashtriya Chemicals and Fertilisers (RCF), National Fertilisers, Fertilizers and Chemicals Travancore (FACT), Gujarat State Fertilisers and Chemicals (GSFC), Chambal Fertilisers & Chemicals and Southern Petrochemicals Industries Corporation (SPIC) are up 3-20% on the Bombay Stock Exchange (BSE).
According to PTI reports, the Fertilizer Ministry has invited fresh proposals for setting up urea plants as well as increasing the capacity of existing ones under the recently notified New Urea Investment Policy for increasing domestic production.
According to the policy, interested private companies are required to give a bank guarantee of Rs 300 crore for every project, although PSU firms have been exempted from it.
The companies will get a subsidy only if urea production starts in the next 5 years, and it will continue till 8 years after the commencement of production, added report.
Among the individual stocks, Zuari Agro Chemicals has locked in upper circuit of 20% at Rs 299 on BSE. A combined 387,151 shares changed hands and there are pending buy orders for nearly 18,000 shares on NSE and BSE at 1448 hours.
Since October 28, the stock zoomed 50% from Rs 199, after reporting a net profit of Rs 22 crore for the quarter ended September 2014 (Q2) against net loss of Rs 39.80 crore in the same quarter last fiscal.
RCF surged 13% to Rs 68 on back of an over five-fold jump in trading volumes. A combined 10.68 million shares changed hands so far against an average sub one million shares that were traded daily in past two weeks on BSE and NSE.
Deepak Fertilisers and Petrochemicals however, dipped 8% to Rs 144 after reporting a sharp 78% year-on-year decline in net profit at Rs 10 crore in September quarter.
