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Fertiliser stocks rallied up to 10 percent after the government approved a proposal to extend urea subsidy till 2020.
Nagarjuna Fertilizers, Madras Fertilizers, National Fertilizers, RCF, Zuari Agro, FACT and Coromandel International gained 3-10 percent.
The government on Wednesday also approved implementation of direct benefit transfer (DBT) for disbursement of fertiliser subsidy.
Urea is made available to farmers at a statutorily controlled price of Rs 5,360 per tonne. The difference between the delivered cost of the fertiliser at farm gate and MRP is given as subsidy to manufacturers.
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