Mumbai: Shares of sugar companies surged in October as prices rose and amid expectations of further rises. Since 1 October, Dhampur Sugar Mills Ltd has surged 89%, Shree Renuka Sugars Ltd 65%, Bajaj Hindusthan Sugar Ltd 45%, EID Parry India Ltd 37%, and Triveni Engineering and Industries Ltd has risen 23%.
On Thursday, shares of Dhampur Sugar Mills shed 0.26%, Shree Renuka Sugars rose 0.51%, Bajaj Hindusthan Sugar Ltd gained 2.23%, EID Parry India Ltd fell 0.40% and Triveni Engineering and Industries shed 5.90%.
The benchmark Sensex fell 0.75% to 26,838.14 points.
According to Deven Choksey, group managing director of KRChoksey Investment Managers Pvt. Ltd, the sugar prices have shot up across the world due to the crop failures overseas.
“Also, due to scanty rains, the production in the domestic market is not high," said Choksey.
The European Union is facing its worst sugar production in more than four decades, pushing domestic prices higher and spurring a wave of imports by the region’s refiners, Bloomberg reported on 27 October.
“Prices are likely to surge. This benefits our domestic producers as they have huge godown stocks," added Choksey.