Financial Daily from THE HINDU group of publications
Thursday, Sep 04, 2003
Financial Daily from THE HINDU group of publications Thursday, Sep 04, 2003 |
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Markets
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Stock Markets Fertiliser stocks feed on monsoon, divestment Our Bureau
Mumbai , Sept. 3 FERTILISER stocks, especially PSUs, shot into the limelight on Wednesday over a good monsoon and disinvestment hopes in various State-owned fertiliser companies. Brokers said the report of the due-diligence exercise in Madras Fertilisers had been completed, triggering interest in the fertiliser stocks. State-run fertiliser stocks, in particular, found much support as the market expects that the completion of the due-diligence exercise in Madras Fertilisers by all eight bidders could mark the beginning or set off chances of disinvestment in other fertiliser PSUs as well. The Government is putting its 33.5 per cent stake in Madras Fertilisers on the block. The market is expecting the Government to get a good price from the sale. Another PSU lined up for disinvestment is Rashtriya Chemicals & Fertiliser. The good monsoon this season also enhances prospects for the agriculture sector. The kharif harvest, in any case, should prove spectacular this year, pushing up agricultural incomes, and thereby fertiliser sales, said an analyst. The Madras Fertiliser stock gained 9.87 per cent at Rs 28.95 on BSE. Rashtriya Chemicals and Fertiliser stock gained 4.52 per cent at Rs 39.35. Other stocks that gained included Gujarat Narmada (up 20 per cent at Rs 55.20) and GSFC (up 9.63 per cent at Rs 29.60). Other gainers included Tata Chemicals, Indo Gulf Fertilisers and Chambal Fertilisers. Dealers said fertiliser stocks have not gained much in the current market rally and the buying was also from some value investors. However, some brokers said there are some concerns over the fertiliser sector. These include the Government policy and also the rise in the fuel prices that could lead to increase in the production cost.
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