Fertiliser Stocks Surge Amid Government's Gas Allocation Priority

Amidst growing tensions in West Asia disrupting gas supplies, India's fertiliser sector witnessed a notable surge in stock prices. The government issued an order prioritizing gas allocation to essential sectors, with fertilisers receiving 70% of their demand, spurring market activity.

The BSE Sensex and NSE Nifty both rebounded, halting previous declines, as companies such as Rashtriya Chemicals and Fertilizers and Deepak Fertilisers saw significant gains. This shift occurred after the oil ministry redirected gas from non-priority sectors in a bid to stabilize critical supply chains.

The new allocation plan is part of a larger strategy, as domestic demand for LPG, CNG, and piped cooking gas takes precedence. The government's intervention comes after violent conflict led to declining maritime traffic and heightened insurance costs in the Strait of Hormuz, creating ripples across energy markets.