NEW DELHI: Shares of sugar companies hogged limelight on Monday after prices of the sweetener climbed to a nearly six-year high at the wholesale market, following tight stocks positions amid speculative buying by stockists and bulk consumers.
Reacting to the development, shares of Shree Renuka Sugar, Dhampur Sugar Mills, Upper Ganges and Bajaj Hindusthan advanced over 14 per cent, 9 per cent, 3 per cent and 9 per cent, respectively.
Other sugar stocks such as Triveni Engineering and Sakthi Sugars gained nearly 7 per cent and 4 per cent, respectively. Mawana Sugars and Ugar Sugar Works closed 4.14 per cent and 5 per cent higher at Rs 66.65 and Rs 38.85, respectively.
Shares of Andhra Sugars, Dhampur Sugar, Dwarikesh Sugar and Uttam Sugar hit their fresh 52-week highs in Monday’s trade.
Dwarikesh Sugar on Saturday reported a nearly 15-fold rise in net profit at Rs 42.35 crore for the quarter ended December 31, 2016 against Rs 2.84 crore in the year-ago quarter.
According to a PTI report, apart from tight stock position in the market following a pause in supplies by the mills, robust demand from bulk consumers and stockists lifted the prices of the sweetener to an almost six-year high.
Also, lower output estimates by Indian Sugar Merchant Association (ISMA) has fuelled the surge in sugar prices.