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MARKET EYE-Fertiliser shares up; Urea price hike way below expectations

Thursday, 11 Oct 2012 | 4:32 AM ET

* Fertiliser stocks including Chambal Fertilisers and Chemicals Ltd

extend gains after the government raised the price of the most used nitrogenous fertiliser urea by 50 rupees per tonne on Thursday. * However, traders say the hike was way below expectations, translating to less than 1 percent. * "The hike would in no way support the margin improvement for fertiliser maker, the next trigger would be the new urea investment policy expected to get approved later this year," said a senior manager at a local brokerage. * Rashtriya Chemicals & Fertilizers gains 5.7 percent while Chambal Fertilisers and Chemicals Ltd gains 4.7 percent.

(manoj.dharra@thomsonreuters.com/abhishek.vishnoi@thomsonreuter

.com)