Backed by a healthy outlook and several positive triggers, shares of the fertiliser company moved higher in Wednesday’s trade, with intraday gains of as much as 15% on the BSE.

Individually, National Fertilisers was the biggest gainer, up 15%, followed by Rashtriya Chemical & Fertilisers, up more than 13%. Fertilisers & Chemicals Travancore (FACT) was up 10% intraday on the BSE on Wednesday.

Shares of Madras Fertiliser, Deepak Fertilizer, Gujarat State Fertilizer & Chemical, Khatian Fertiliser and Mangalore Fertiliser and Chemical rose 5% and 7.5% on the BSE intraday. Shares of Chambal Fertilizer also rose more than 3% today.

The main reason for the continued rise in fertiliser stocks could be the looming deadline for Russia to impose an export tax on fertilisers. In addition, the government may increase subsidies for urea produced by fertiliser companies in the 2023 federal budget.

Earlier, Reuters quoted Interfax news agency as saying that Russia has announced that when the price exceeds $450 per ton, it will impose a 23.5% export tax on all types of fertilisers. The export tax is said to be levied from January 1, 2023.

Urea is used as a fertiliser and feed additive. In addition, it is used as a starting material in manufacturing plastics and pharmaceuticals.