Deepak Fert jumps up

Deepak Fertilisers is showing a spike up in volumes of almost 9 times; from two-week average volume of 21,000 shares, today almost 2 lakh shares are currently traded. And the stock is strongly in the green – up over 10% at Rs.146 levels, with an intra day high at Rs.149.70.

This sudden spike up on interest on the counter is on the back of the Delhi High Court ruling, which has ordered the Govt to resume supply of gas to the plant in Maharashtra that was stopped in May 2014. This order was in response to a petition by the company against the govt’s order to Reliance Industries and GAIL (India), to stop supply to its plant in Raigad district, calling it arbitrary and unfair.

The court also ruled that the supply of gas to the company be resumed until the government unveils a new policy; it said all phosphatic and potash (P&K) fertilizer-manufacturing companies should be treated equally.

Laying the blame fairly and squarely on the Govt, the Court said in very storng words, “the suspension of gas supply was due to the fault of the department of fertilizers not framing related guidelines.”