Fertiliser shares slide after Railways withdraws sops: Slight Positive for the Railway Counters

Six fertiliser stocks fell by 0.23% to 2.27% at 15:07 IST on BSE as Railways on Tuesday, 6 March 2012, withdrew 4% exemption on fertiliser loading rates ahead of Rail Budget on 14 March 2012.
Zuari Industries (down 2.27%), Tata Chemicals (down 2.08%), Gujarat State Fertilizers Company (down 1.49%), Rashtriya Chemicals and Fertilizers (down 0.78%), Chambal Fertlisers and Chemicals (down 0.45%) and National Fertilizers (down 0.23%), edged lower.
The BSE Sensex was down 43.10 points or 0.25% to 17,130.19.
In 2010, Railways had increased freight rate by 4% on some key commodities such as sugar and some petroleum products to meet rising fuel cost and higher wages. However, foodgrains and fertilisers were exempted from the increase by the national transporter.
The exemption was withdrawn as part of rationalizing the freight rate, according to a railway notification. The new rates came into effect from Tuesday, 6 March 2012.