Press Trust of India / Mumbai Sep 02, 2010, 19:51 IST
Shares of sugar companies today rallied by up to 11 per cent on the BSE amid expectations that the sugar sector could be freed from government control.
Simbhaoli Sugars jumped by a whopping 10.72 per cent to Rs 41.30 on the Bombay Stock Exchange. During the day, the scrip surged by 14.47 per cent to touch a one-month high of Rs 42.70.
Another sugar producer, Bajaj Hindusthan Sugar & Industries, zoomed by Rs 22.55, reflecting an upsurge of 4.88 per cent -- the maximum permissible one-day gain on the BSE.
Balrampur Chini Mills, too, touched a one-month high after surging by 5.79 per cent to Rs 90.40. It finished the day at Rs 88, up 2.98 per cent from the previous close.
The rise in sugar shares was also aided by the increase in sugar prices in the international market, analysts said.
"The sugar sector was strong as sugar prices were rising in the international market," Bonanza Portfolio Vice-President (Research-Equity) Avinash Gupta said.
Meanwhile, the 30-share benchmark Sensex ended flat at 18,238.31 points, up 0.18 per cent.
According to sources, Food and Agriculture Minister Sharad Pawar today met Prime Minister Manmohan Singh to apprise him about the proposed move to give freedom to mills for sale of the sweetener.
At present, the government controls the sugar industry by fixing the quantity of the sweetener that mills can sell in the open market as well as through ration shops each month.
Triveni Engineering & Industries also rose by 4.71 per cent on the BSE, while Shree Renuka Sugars was up by 4.06 per cent, DCM Shriram Industries by 2.55 per cent, Oudh Sugar Mills by 8.29 per cent and Uttam Sugar by 8.97 per cent.
Content Guide
Shares of sugar companies today rallied by up to 11 per cent on the BSE amid expectations that the sugar sector could be freed from government control.
