India fertiliser stocks tumble on risk-off mood; analysts stay bullish

Madras Fertilizers

22/12/2022 08:31

** Shares of Indian fertiliser companies come off peaks on
Thursday, as speculation-driven rally on bets of divestment
fizzles amid rise in risk-off sentiment, say analysts
    ** Govt-owned firms Madras Fertilizers  MDFT.NS  (-10%),
National Fertilizers  NAFT.NS  (-6.63%), Rashtriya Chemicals &
Fertilizers  RSTC.NS  (-5.28%),  Fertilizers and Chemicals
Travancore  FCTL.NS  (-8.4%) see sharp decline as of 1:00 p.m.
IST 
    ** Shares of major private firms Coromandel International
 CORF.NS  and Chambal Fertilisers  CHMB.NS  also lose over 2%,
each
    'OUTLOOK POSITIVE'
    ** There is no fundamental change in the sector, say two
analysts, who declined to be named; adds, sharp uptick seen
earlier this year was unsustainable
    ** Outlook remains strong due to slide in LPG prices and
rise in govt's subsidy disbursement, says Himanshu Binani,
equity research analyst at Prabhudas Lilladher; adds, "sharp
decline is just a correction"
    ** Stock move so far this year: Madras Fertilizers  MDFT.NS 
(159%), National Fertilizers  NAFT.NS  (25%), Rashtriya
Chemicals & Fertilizers  RSTC.NS  (51%),  Fertilizers and
Chemicals Travancore  FCTL.NS  (107%) and Coromandel
International  CORF.NS  (18%), Chambal Fertilisers  CHMB.NS 
(-26%)  
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Fertilizer stocks slide after sharp uptick    https://tmsnrt.rs/3HS4jKf
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 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))