Meanwhile, the BSE Sensex was up 27.52 points, or 0.15% to 18,265.83 Coromandel International (up 1.88%), Bharat Fertilizers (up 1.75%), GSFC (up 2.07%), Chambal Fertiliser & Chemicals (up 4.56%), Zuari Industries (up 4.26%), Nagarjuna Fertilisers & Chemicals (up 3.12%), Deepak Fertilisers (up 5.27%), Tata Chemicals (up 3.42%), Rashtriya Chemicals & Fertilisers (up 4.27%) and National Fertilizers (up 3.89%), edged higher. The key monsoon rains were 16% above normal in the past week, compared with 29% above normal in the previous week, the weather office said on Thursday, 2 September 2010. The weekly reading reflects good showers over most parts of the country, except the eastern region, where the seasonal rains were poor. Cumulative rainfall since 1 June 2010 was 1% below normal, it said. The south west monsoon running between June to September is important for India as about 60% of the country's farmlands are rain-fed. Another trigger for the rally in fertiliser stocks, was a media report that the government is likely to allocate about 17.5 million metric standard cubic metres (mmscmd) extra natural gas a day every year to fertiliser producers over the next few years. As of now, the fertiliser sector gets about 40 mmscmd annually. Allocating additional gas to fertiliser units would help the government in lowering the subsidy given to producers of the price-controlled commodity as they would switch to the more cost efficient feedstock than naphtha. Powered by Capital Market - Live News |