Fertilizer stocks on a roll. Here's why | Economic Times

New Delhi: Shares of domestic fertilizer producers were on a roll on Friday as China asked some key fertiliser firms to suspend exports to the world.According to Reuters, some of China's key fertilizer companies said they would temporarily suspend exports to assure supply in the domestic market.The decision has been taken after the statement on the website of the National Development and Reform Commission (NDRC) on Friday.Following the news, domestic fertiliser firms were in demand on Dalal Street. Rashtriya Chemicals & Fertilisers gained 10 per cent to Rs 87.95. FACT and Madras Fertilizers advanced 9 per cent to Rs 146.70 and Rs 33.75, respectively.Chambal Fertilizers, Coromandel International, Southern Petrochemicals, Zuari Agro Chemicals, Khaitan Chemicals and Fertilizers, National Fertilizers, GNFC and Gujarat Narmada Fertilisers & Chemicals added between 4 to 7 per cent each."Fertiliser companies are expected to benefit as there are talks of China suspending exports post the floods," said S Ranganathan, Head of Research at LKP Securities.The state planner said in a statement that it had summoned fertilizer firms for a discussion against hoarding and speculation. It did not identify the companies. The latest move by Beijing is meant to tackle soaring prices of major raw materials.Fertiliser prices in China, which is both a major consumer and producer, have hit records this year amid stronger demand from overseas, lower production domestically and high energy costs."Monsoons in India has been good in select states and with subsidies being released, many of fertiliser companies are seeing investor appetite due to attractive valuations," said Ranganathan.He is bullish on Gujarat State Fertilizers and Chemicals, Gujarat Narmada Fertilisers & Chemicals and Chambal Fertilizers.