Sugar stocks surge as supplies from Brazil gets disrupted
Mumbai: Shares of sugar companies rallied on the bourses Tuesday as global sugar futures witnessed a significant rally amid ongoing concerns over the disruption of supplies from Brazil, the world's largest producer and exporter of the sweetener.
While Shree Renuka Sugars ended 10.26 percent higher at Rs 21.50, Bajaj Hindusthan was up 3.74 percent to Rs 14.72 on the BSE.
Mawana Sugars jumped 8.88 percent, Oudh Sugar Mills rallied 5.71 percent.
Dhampur Sugar Mills rose by 3.27 percent, Sakthi Sugars by 9.99 percent and Dwarikesh Sugar Industries by 10.62 percent.
Global sugar futures prices are trading near the strongest level since October 2012 as ongoing concerns over a disruption to supplies from Brazil continued to drive prices higher.
According to market experts, the rally in the sugar counter was mainly due to the fact that as sugar shipments from Brazil have been hampered, domestic sugar companies could export more sugar.
The rally in the sugar counter assumes significance as the broader market settled for the day in the negative territory as the 30-share benchmark index Sensex ended the day with losses of 28.92 points, down 0.14 percent.