Morning does not seem to be very good on market but the following news will raise prices for fertiliser shares.
GOOD BUYS FOR MEDIUM TERM TILL ANNOUNCEMENT OF THE POLICY :
Government expected to increase subsidy rates
· Government of India (GoI) has decided to increase the subsidy rates under NBS w.e.f. 1st April ‘2011 – to compensate companies for higher raw material prices
· Prices for Urea fixed at $350, Di-ammonium phosphate (DAP) at $580, Muriate of Potash (MOP) at $ 390 while Sulphur at $180
· Higher subsidies is likely to keep the profitability of complex fertiliser players intact
· Positive news flow for the complex fertiliser space .