Fertilizer stocks surge amid optimism for above-normal monsoon and GST removal proposal

The surge in buying interest is also linked to reports suggesting that the upcoming Goods and Services Tax (GST) Council meeting might consider a proposal to remove GST on fertilizers.

Shares of fertilizer companies saw significant gains, rising up to 12% on the BSE in Wednesday’s intra-day trade. The rally is driven by expectations of an improved outlook due to hopes for an above-normal monsoon.

Key players such as Chambal Fertilisers and Chemicals, Deepak Fertilisers and Petrochemicals Corporation (DFPCL), Rashtriya Chemicals and Fertilizers (RCF), Gujarat State Fertilizers & Chemicals (GSFC), Coromandel International, National Fertilizers (NFL), and Paradeep Phosphates experienced gains ranging from 4% to 12%.

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The surge in buying interest is also linked to reports suggesting that the upcoming Goods and Services Tax (GST) Council meeting might consider a proposal to remove GST on fertilizers.

Notably, Chambal Fertilisers, Coromandel International, NFL, and RCF reached their respective 52-week highs during the trading session.