Sugar shares rally ahead of festive season
Shares of sugar manufacturing companies are in demand with most of the frontline stocks up over 4% o…Shares of sugar manufacturing companies are in demand with most of the frontline stocks up over 4% on expectation of huge demand ahead of the festive season.
Among the individual stocks Shree Renuka Sugars, Bajaj Hindustan and Dhampur Sugar Mills have rallied 6% each on the Bombay Stock Exchange. Balrampur Chini Mills, Triveni Engineering and Industries and Dharani Sugars and Chemical are up 4-5%.
On Monday, sugar futures edged higher on expectations of a rise in retail demand in the next two months due to the upcoming festivals. According to analyst, the festive season will increase demand for sugar and improve the profitability of these companies.
At Mumbai's Vashi wholesale market, Medium sugar (M-30) strengthened by Rs 22 per quintal to Rs 3,744 in yesterday's trade. In past three days, the sugar prices of M-30 grade rose by Rs 83 or 2.2% from Rs 3,661 per 100 kg.
Meanwhile, according to the Indian Sugar Mills' Association (ISMA), the sugar output in 2012/13 is expected to fall to 24 million tonnes, from an earlier estimate of 25 million tones.
