Indian fertiliser manufacturers soar ahead of 'pivotal' federal budget

Gujarat State Fertilizers & Chemicals

28/01/2021 05:56

** Shares of Indian fertiliser manufacturers jump as much as
11.5% as Finance Minister Nirmala Sitharaman is expected to
unveil measures to boost the industry on Feb. 1
    ** Shares of National Fertilizers  NAFT.NS  jump 11.5% to a
one-week high of 43.8 rupees, marking their sharpest intraday
pct climb since Jan. 11; NAFT jumped 45% in 2020
    ** Mangalore Chemicals and Fertilisers  MNGL.NS , Madras
Fertilizers  MDFT.NS , and Fertilisers And Chemicals Travancore
 FCTL.NS  rise between 8.3% and 10%
    ** The FY 2022 union budget expected to be pivotal for the
fertiliser industry, ICRA says in a pre-budget note, adding that
clarity is expected on the release of 650 bln rupees ($8.89 bln)
in fertilizer subsidies announced in November, which would
enable clearance of backlog
    ** ICRA also expects the announcement of further reforms
like a roadmap on the rollout of the true form of Direct Benefit
Transfer for the fertiliser sector
    ** Expect lowering of import duties on raw materials for
fertilizers, says Yes Bank in a pre-budget note
    ** Madras Fertilizers  MDFT.NS  is up 37% YTD, as of last
close, while Mangalore Chemicals and Fertilisers  MNGL.NS  has
risen 20%
    ** MNGL climbed 42% in 2020, while Fertilisers And Chemicals
Travancore  FCTL.NS  jumped 55%

($1 = 73.0970 Indian rupees)

 (Reporting by Chris Thomas in Bengaluru)
 ((chris.thomas@thomsonreuters.com; +91-80-6749-8695; Reuters
Messaging: chris.thomas.thomsonreuters.com@reuters.net))