Shares of Tata Chemicals Ltd. jumped nearly 3% on Thursday, June 25 after investors reacted to the possible unlocking of its parent company. The rise was driven by renewed expectations that Tata Sons Ltd. will be listed on the stock market following new rules from the Reserve Bank of India (RBI) on non-banking financial companies (NBFCs). Domestic equity benchmarks came off day's high after rising 1% intraday. The Nifty 50 was 171.45 points, or 0.71%, higher at 24,193.10 after rising as much as 1% to 24,261.60., while the 30share BSE Sensex gained 586.82 points, or 0.76%, to 77,578.04 after rising 0.15% earlier.
Shares of the chemical arm opened at Rs 755 against a previous close of Rs 728.35 and extended gains to hit an intraday high of Rs 775 apiece on the NSE. Shares last traded 2.73% higher at Rs 748.20 apiece on the NSE. This compares to a rise of 0.71% in the NSE Nifty 50 index. The stock is up 2% in one week, but has dropped 3% in one month and 21% in the last one year. The Tata Group company commands a market cap of Rs 19,055.77 crore, according to stock exchange data.
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The RBI has tightened rules for large NBFCs. Under the new norms, companies with Rs 1 lakh crore or more assets will now be treated as 'upper layer' NBFCs. These companies face stricter rules and also have to list within three years. Tata Sons is in focus as the parent entity may fall in this category. This means it could be forced to get listed on the stock exchanges. Earlier, Tata Trusts had opposed the listing because it can change group structure. Tata Chemicals shares reacted as the company owns nearly 3% in Tata Sons with a stake valued at Rs 20,000 crore. If Tata Sons gets listed, the stake value becomes more visible.
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