Sugar stocks have resumed their rally on the exchanges sharply swinging from to the green after a brief pause on Friday. Shares of Bajaj Hindusthan Sugars soared 12.4% on the NSE on Monday.
The shares rose to a high of Rs 26 apiece, and later pared some of the gains to trade 11% higher at Rs 25.72.
Stocks of Shree Renuka Sugar Ltd., Dalmia Bharat Sugar & Industries Ltd., and Triveni Engineering & Industries Ltd. jumped up to 7.8%, 4.4%, and 3.5% respectively.
Shree Renuka pared some gains to trade 7% higher at Rs 26.88, while Triveni and Dalmia Bharat traded 2% and 2.55% as of 10:20 a.m.
Additionally, Balrampur Chini Mills Ltd. and E.I.D Parry (India) Ltd. scrips rose as high as over 3% to Rs 751 and Rs 821 respectively as against a 0.12% advance in the benchmark Nifty index.
The rally comes despite India approving duty-free imports of 1 million metric tonnes of raw sugar to ease a sharp rise in domestic prices and improve supplies ahead of the festive season.
However, the delivery of much of raw sugar will only be done by October, meaning that supply remains hit amid a delayed monsoon and flaring el nino.
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Some of the sugar shipments to India are likely to reach domestic shores before Oct. 15, but the exact quantity remains difficult to estimate at this stage, a cooperative sugar mills body NFCSF chief said, even as the Centre's crackdown on hoarding has begun to cool prices.
Brazil is the only realistic source of imports for now, with Thailand, the other traditional supplier, ruled out as it is grappling with its own shortfall, National Federation of Cooperative Sugar Factories (NFCSF) President Prakash Naiknavare told reporters on Sunday.
Transit time from Brazil to Indian ports typically takes 40-45 days, and cargo needs additional time to move from port to mill once it lands, he noted.
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