NFL, RCF Stocks Surge Up to 19% Following Natural Gas Regulation Order and US-Iran Conflict De-escalation
Fertiliser Stocks Rally on Government Order and US-Iran Conflict De-escalation Hopes
On Tuesday, fertiliser stocks in India surged, with some shares rising as much as 19%, driven by the government's issuance of the Natural Gas Regulation Order, 2026, and growing optimism around a possible de-escalation of the US-Iran conflict.
The Natural Gas Regulation Order, 2026, aims to regulate natural gas supply to fertiliser plants, capping it at 70% of the average consumption over the previous six months. The order also requires that the supplied natural gas be used exclusively for fertiliser production, preventing diversion for other purposes.
Key beneficiaries of the rally include:
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
- Fertilizers and Chemicals Travancore (FACT): +19%
- Rashtriya Chemicals and Fertilizers (RCF): +12.59%
- National Fertilizers: +11.81%
- Chambal Fertilisers & Chemicals: +7.16%
Other fertiliser companies also saw gains, with Coromandel International shares climbing 4.38% and Deepak Fertilisers & Petrochemicals Corporation share price rising 6.51%.
The rally in fertiliser stocks was part of a broader market trend, with the BSE Sensex gaining 540 points (0.70%) to trade at 78,106.15, and the Nifty 50 up 192.60 points (0.80%) at 24,220.65.
Investor Takeaway
Investors should be cautious of the short-term market volatility driven by geopolitical events.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
