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Fertiliser stocks zoom up to 8% on Thursday; here's what fueling the rally

Shares of fertiliser companies were buzzing in trade on Thursday, May 15, 2025. Major fertiliser stocks rallied up to 8.5 per cent. National Fertilizers was leading the gains, and was up 8.5 per cent, it was followed by Madras Fertilisers up 8.1 per cent, Rama Phosphates up 5 per cent, Khaitan Chemicals & Fertilizers 4.8 per cent, Krishna Phoschem 4.3 per cent, and Deepak Fertilizers 4 per cent as of 12:45 PM. Among others, The Fertilisers and Chemicals Travancore (FACT), Bohra Industries, Mangalore Chemicals & Fertilizers, Coromandel International, Rashtriya Chemicals and Fertilizers, Paradeep Phosphates and Southern Petrochemicals Industries Corporation rose up to 3.5 per cent each. In comparison, the benchmark Nity50 index was trading at 24,676.25 levels, down 9.35 points or 0.04 per cent. Catch Stock Market Updates Today LIVE According to analysts, the better-than-expected retail inflation data and expectations of a good monsoon season ahead have lifted the sentiment around fertiliser stocks. Kranthi Bathini, director - equity strategy at WealthMills Securities, said that the fertiliser stocks are coming out of a consolidation phase amid expectations of a strong monsoon ahead and cooling inflation. "Provided the timing and if the monsoons are normal, FY26 could see a resurgence in demand for domestic fertiliser companies," Bathini said. In April, India's consumer price index-based inflation slipped to 3.16 per cent, its lowest in nearly six years. Retail inflation stood at 3.34 per cent in March. Last month, the India Meteorological Department projected an above-normal monsoon this year. In quantitative terms, the monsoon rainfall (June-September) across the country is expected to be 105 per cent of the long-period average (LPA), which stands at 87cm, with a model error of 5 per cent both sides, according to the weather department's initial estimate for the South-West Monsoon. ALSO READ | Echoing similar views, Ravi Singh, senior vice president for retail research at Religare Broking, says the fertiliser stocks are witnessing aggressive lower-level buying after a consolidation phase. Additionally, the stocks were rangebound due to the tensions around the India-Pakistan conflict. Singh recommends 'The Fertilisers and Chemicals Travancore' and 'Deepak Fertilisers' as potential buys amid expectations of high demand in the coming monsoon.