Rashtriya Chemicals jumps 20% on block deals worth Rs 257 cr, likely exclusion of fertilisers from GST

Rashtriya Chemicals jumps 20% on block deals worth Rs 257 cr, likely exclusion of fertilisers from GST

Rashtriya Chemicals and Fertilisers shares jumped 20 percent to hit its upper circuit as shares worth Rs 257 crore changed hands on June 20. Around 1.2 crore shares or 2.1 percent equity was exchanged in a block deal, at an average price of Rs 221 per share.

Moneycontrol could not immediately ascertain the buyers and sellers of the deal.

At 2.45 pm, shares of Rashtriya Chemicals were quoting Rs 220.65 on the bourses, higher by 19.1 percent after receding from its 52-week high of Rs 222.26 per share.

Follow our market blog to catch all the live updates

Fertiliser stocks including state-run National Fertilisers Limited (NFL), Chambal Fertilisers, Rallis India and others zoomed up to 20 percent, extending previous session's gains, boosted by reports of a proposal to remove Goods and Services tax (GST) on fertilisers.

The first GST Council meeting of Modi Government 3.0 is scheduled to be held on Saturday (June 22) wherein a decision may be taken to remove fertilisers from within the ambit of GST.

The Union Cabinet recently announced the minimum support price (MSP) for 14 Kharif-season crops, including paddy, ragi, bajra, jowar, maize, and cotton.

Investors expect that the increase in MSP will improve farmers' purchasing power, thereby encouraging them to invest more in agricultural inputs such as fertilisers.

Over the past year, RCF shares have gained almost 100 percent as compared to a 25 percent gain in the Nifty 50 index.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.