Fertiliser stocks surged in Tuesday's trade. Sources told CNBC-Awaaz that they will now be paid subsidies every week.

SP Tulsian spoke to CNBC-TV18 about the fertiliser stocks and the impact of subsidy news on the sector.

Tulsian said that it will be seen positive for all the fertiliser companies going forward and it will ease the position for all, whether urea or complex fertilizer company.

“This will be changing the perception and the stock rerating because the consolidation in fertilizer industry has happened,” said Tulsian.

“With direct benefit transfer becoming weekly, this will be having impact on the reduction in the burden of the working capital that will improve their financial margins and apart from that rerating of fertiliser stocks will happen and that may see the PE expansion also,” he said.