Agriculture-related stocks such as Monsanto, Kaveri Seeds and Chambal Fertilisers gained on Monday after the weather office said monsoon rains are likely to end later than usual this year.
Cheering the announcement, shares of companies such as Monsanto surged as much as 8.50 per cent and Fertilizers & Chemical Travancore climbed as much as 5.3 per cent.
Other monsoon-related stocks such as Kaveri Seeds and Insecticides (India) shares jumped 3.41 per cent and 3.41 per cent, intraday. Chambal Fertilisers & Chamicals gained 2.81 per cent intraday.
Finance Minister Arun Jaitley singled out good rains as one of the factors that would help India withstand Britan’s vote to leave the EU.
Monsoon rains typically arrive at the southern coast of Kerala state by June 1 and start retreating by September from the western state of Rajasthan.
Monsoon rains are the lifeblood of India’s agriculture-dependent economy and a week’s delay in their onset this year has caused the planting of summer-sown crops such as cotton, rice, soybean and sugar cane to drop by nearly 24 percent.
But a late start is no guarantee of a delayed end as it states a possibility that the terminal phase will be wetter and the withdrawal will be later than normal.
(With agency inputs)