OTHER GROUP COMPANIES
market

Rs. 7,000 cr urea subsidy announcement fails to lift fertilizer shares

Despite benchmark indices S&P BSE Sensex and CNX Nifty rose by 0.86% and 0.88% respectively some fertilizer shares dropped 1-4% in the day. However, shares of some fertilizers company gained 0.25-1.75%.

October 16, 2015 7:49 IST | India Infoline News Service
The Cabinet Committee on Economic Affairs (CCA) chaired by the Prime Minister Narendra Modi, recently approved a Special Banking Arrangement (SBA) for a loan of Rs.7,000 cr to be given to the fertilizers company as urea subsidy. But, the announcement failed to attract investors as most of the fertilizers shares tumbled in the day.

Despite benchmark indices S&P BSE Sensex and CNX Nifty gaining by 0.86% and 0.88%  respectively some fertilizers shares dropped 0.93-4.69% in the day. However, shares of some fertilizers company gained 0.25-1.75%.

Shares of Dharamsi Morarji crashed by 4.69% to Rs. 63.05 on BSE. Shares of Shiva Global crashed by a whopping 5.7% and closed the day at Rs. 19.85, Bharat Agri closed 2.33% lower at Rs. 90.15, Madras Fertilizers dropped 2.25% to Rs. 13.01 and Coromandal International dipped by 2.09% to Rs. 190.15.

Among notable gainers today, Zuari Agro Chem rose by 1.75% to Rs. 162.80, JK Agri surged by 1.16% to Rs. 195.20 and Deepak Fertilizers soared by 1.10% to Rs. 132.80.

Is is to be noted that in past three and a half months, shares of 12 out of 19 fertilizers companies have crashed up to 6-36%, whereas shares of 7 companies have risen 4-122%.

Among the losers, Mangalore Chem (down 35.92%), Bharat Agri (down31%), Coromandal International (down 23.34%), Shiva Global (down 21%), Zuari Agro Chem (down 16.87%), Madras Fertilizers (down 12.78%) and Basant Agro is down by 12.69%.

Offering positive returns, Dharamsi Morarji is up 122%, Rama Phosphates (up 27.54%), Gloster Ltd (up 26.58%), National Fertilizers (up 3.65%), GSFC (up 3.58%), Chambal Fertilizers (up 3.15%) and shares of GNFC are up by 3.13% since June 30, 2015.

A consortium of Public Sector Banks led by State Bank of India (SBI) and Punjab National Bank (PNB) has been formed for settlement of outstanding indigenous urea subsidy bills to the tune of Rs. 7,000 cr to the fertilizer companies in 2014-15.

OPEN A DEMAT ACCOUNT & Get
FREE Benefits Worth 5,000

FEATURED ARTICLE

BLOGS

Open Demat Account

  • 0

    Per Order for ETF & Mutual Funds Brokerage

  • 20

    Per Order for Delivery, Intraday, F&O, Currency & Commodity