Fertiliser stocks FACT, RCF, GSFC and others jump up to 20% on MSP hike
FACT (The Fertilisers and Chemicals Travancore) were locked in the 20% upper circuit limit at ₹1,093 apiece, resulting in a gain of nearly 71% in just 11 sessions. Similarly, other stocks such as Rashtriya Chemicals & Fertilizers, National Fertilizers, Madras Fertilizers, Chambal Fertilisers & Chemicals, Gujarat State Fertilizers & Chemicals, Paradeep Phosphates, Zuari Industries, and Coromandel International have all gained between 3% and 19% in today's intraday trade.Also Read: GSFC share price rises 7%: Prabhudas Lilladher expects more than 20% upside for the stockInvestors anticipate that the rise in MSP will enhance farmers' purchasing power, thereby stimulating their investment in agricultural inputs like fertilisers.
The Union Cabinet on Wednesday announced the minimum support price (MSP) for 14 Kharif-season crops, including paddy, ragi, bajra, jowar, maize, and cotton.The MSP hike, projected to have a financial implication of ₹two lakh crore for the government and expected to result in an estimated gain of ₹35,000 crore for farmers compared to the previous season, is aimed at significantly boosting farmers' incomes and improving their economic conditions. The increase in MSP ranges between 1.4% and 12.5%, with paddy, the most widely cultivated crop, seeing a notable 5.35% rise in its MSP.
The highest absolute increases have been recommended for oilseeds and pulses. Also Read: MSP hike likely to benefit FMCG, auto, banking and consumer stocksThe MSP hike announcement has also boosted stocks in other sectors such as FMCG, consumer durables, and auto, with the Nifty FMCG, Nifty Auto, and Nifty Consumer Durables indices currently trading with gains of up to 0.50%.Notably, today's gain in fertiliser stocks marked the
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