Fertiliser stocks were on an uptrend in Tuesday's trade with RCF, GNFC, FACT, and Chambal Fertilisers among others trading in green as the Brazil Potash prices dropped.
Rashtriya Chemicals and Fertilizers, RCF stock touched an intraday high of Rs 207.89 per share on the NSE, zooming 4.36 percent. At 1:20 pm, the stock was trading at Rs 204.97 apiece, up 2.90 percent. The stock has gained after two days of consecutive fall.
Gujarat Narmada Valley Fertilizers & Chemicals Ltd followed the broader trend in the sector with the scrip rising 2.5 percent to its intraday high of Rs 693 per share. The stock has been gaining for the last two days and has risen 1.58 percent in the period.
The analysts at the global brokerage Morgan Stanley noted potash prices have yet to react to potentially tighter supply dynamics after drop in Brazil Potash prices. "Urea prices largely retreated across key regions last week," it stated.
Chambal Fertilisers and Chemicals share price touched an intraday high of Rs 517.8 per share on the NSE, up 2.68 percent. It rose after fall for three straight sessions, while Fertilisers And Chemicals Travancore Ltd, NSE FACT, zoomed nearly 3 percent to the day's high of Rs 1,023 per share on the NSE.
At the time of publishing, the counter quoted Rs 1,000.30 apiece, rising 2.82 percent.
The monthly price of muriate of potash (MOP) dropped from a peak of over $1200 MT in 2022 to $300 levels in June 2024, mainly due to Russia-Ukraine war.
Amid the uptrend in the sector, Nuvama Institutional Equities maintains a cautiously optimistic view on the sector, noting that the global agrochemicals industry continues to face pressures from high inventories and logistical challenges.
Additionally, most of the management of agrochemicals companies provided muted commentary, suggesting that a recovery is likely only in the second half of FY25 due to elevated global inventories. Nuvama also highlighted the risk of Chinese oversupply, which could affect prices.
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