MRPL, Chennai Petroleum and Deepak Fertilisers are among the top gainers currently on the BSE, , supported by strong quarterly performance, refining-sector momentum and positive policy sentiment for fertiliser companies. Chennai Petroleum led the pack with a sharp surge of around 48% to Rs. 1,254.70, while Deepak Fertilisers jumped over 30% to Rs. 1,618.10 and MRPL gained over 15% to Rs. 177.35.

Trigger

• Refining stocks were supported by strong quarterly earnings and healthy refining metrics.
• MRPL reported net profit growth of 436.4% YoY to Rs. 9,148 million, or around Rs. 914.8 crore, for the June quarter.
• Chennai Petroleum benefited from the broader re-rating in refining stocks.
• Fertiliser stocks gained after the Union Cabinet approved the National Investment Policy for Urea-2026.
• The policy aims to reduce import dependence by encouraging new gas-based urea manufacturing units.
• The policy also provides for assured offtake or buyback support, improving visibility for future investments.
• The market is reacting to two different but powerful sector themes,  refining profitability and fertiliser policy support. In refiners, the rally is being driven by strong earnings momentum, better refining spreads and confidence that the current refining cycle remains supportive. When companies like MRPL report sharp profit growth, investors usually extend that optimism to other refining names such as Chennai Petroleum.

The common thread across all three stocks is that the market is rewarding sectors where earnings visibility or policy visibility has improved. Refiners are benefiting from cyclical profit strength, while fertiliser stocks are gaining from a structural policy push. In both cases, investors are looking beyond one-day price moves and pricing in stronger medium-term operating prospects.

However, the sharpness of the rally also calls for caution. Refining margins can be volatile and depend on crude prices, product cracks, inventory gains or losses and global demand. Fertiliser stocks, on the other hand, remain sensitive to subsidy policy, gas prices, working capital cycles and execution of new capacity.