- Shares of fertiliser companies rose after vessels stranded near Hormuz resumed journey to India
- Ten to twelve vessels carrying urea and DAP fertilisers were delayed due to regional tensions
- Fertilisers and Chemicals Travancore shares gained 4.5%, Chambal Fertilizers rose 3% on NSE
Shares of fertiliser stocks such as Chambal Fertilisers and Chemicals Ltd., Rashtriya Chemicals & Fertilizers Ltd., Fertilizers and Chemicals Travancore, and others rallied in afternoon trade on Monday, June 22, after 10-12 vessels carrying fertilisers have resumed their journey to India upon being stranded near the Strait of Hormuz amid regional tensions. Official sources told NDTV Profit that the supply vessels, which include both Indian and foreign-flagged carriers, had been held up near the critical waterway as hostilities between the US, Israel and Iran disrupted shipping movement through the Strait of Hormuz.
Shares of Fertilizers and Chemicals Travancore Ltd. rose 4.5% to Rs. 932, while Chambal Fertilizers & Chemicals Ltd rose 3% to hit an intraday high of Rs 492 on the NSE. Share price of National Fertilizers Ltd. was up 2% to hit an intraday high of Rs 79.95. Shares of Coromandel International Ltd., Rashtriya Chemicals & Fertilizers Ltd. and Gujarat State Fertilizers & Chemicals Ltd. also traded higher. Shares of Paradeep Phosphates also rallied nearly 3% during the session on reports of the supply resumption.
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Fertilisers-Laden Vessels Resume Journey To India After Being Stranded Near Hormuz
Sources said out of the vessels now back en route, eight are carrying urea fertilisers, while the remaining four are transporting DAP (di-ammonium phosphate) and related raw materials. The vessels are expected to arrive in India over the next two to three days, officials added. The development comes amid uncertainty over the safe passage of commercial shipping through the Strait of Hormuz, a key route for India's fertiliser and energy imports, after Iran announced in the weekend that it had shut the waterway.
The shutdown came after Israel attacked Hezbollah in Lebanon, which was a direct violation of ceasefire terms agreed under a memorandum of understanding (MoU) signed between Washington and Tehran last week. Mediators Qatar and Pakistan had subsequently said that the US and Iran had agreed to establish a "line of communication" to ensure safe passage for commercial vessels through the strait for a 60-day period, as part of the broader framework being negotiated under the MoU.
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