Fertiliser stocks in India rallied by up to 19% on Tuesday after the government issued the Natural Gas Regulation Order, 2026, and amid growing hopes of a de-escalation in the US-Iran war in the Middle East, which could help stabilise energy supplies to fertiliser plants.
Fertilizers and Chemicals Travancore () share price emerged as the top gainer among the pack, surging as much as 19%. Rashtriya Chemicals and Fertilizers (RCF) shares rose 12.59%, while National Fertilizers share price advanced 11.81%. Chambal Fertilisers & Chemicals stock price gained 7.16%.
Among other fertiliser companies, Coromandel International shares climbed as much as 4.38%, while Deepak Fertilisers & Petrochemicals Corporation share price rose 6.51%.
Optimism around a possible de-escalation of the US-Iran conflict also supported market sentiment. The rally in fertiliser stocks followed gains in the broader Indian stock markets and global equities, after US President Donald Trump indicated that the conflict could be nearing its end.
The benchmark BSE Sensex rallied 540 points, or 0.70%, to trade at 78,106.15, while the Nifty 50 was up 192.60 points, or 0.80%, at 24,220.65.
Natural Gas Regulation Order
The rally in fertiliser stocks also came after the government issued the Natural Gas Regulation Order, 2026. Under the rule, natural gas supply to fertiliser plants will be capped at 70% of the average consumption over the previous six months. The order also mandates that the supplied natural gas must be used exclusively for fertiliser production and cannot be diverted for any other purpose.
Natural gas is a critical input for fertiliser manufacturers, as a majority of it is consumed as feedstock in the production of ammonia — a key raw material used to manufacture urea.
Global natural gas supplies have recently faced disruptions, including in India, after QatarEnergy, one of the world’s largest gas producers, declared force majeure. The development triggered a chain reaction among its clients.
QatarEnergy declared force majeure after drone attacks from Iran, amid the ongoing US-Iran war, reportedly caused damage to parts of its infrastructure.