Shares of sugar companies hogged limelight in trade on Tuesday as 11 sugar stocks hit their fresh 52-week highs and rose up to 20 per cent on expectation of lower sugar output this year owing to deficient monsoon.
Dharani Sugars, Mawana Sugars, Balrampur Chini, Shakthi Sugars, Simbhaoli Sugars, Dwarkesh Sugar and Empee Sugar were among the 11 sugar stocks that hit their 52-week highs in today's trade.
Stocks of Dharani Sugars and Gayatri Sugars led the sugar pack and surged 20 per cent each on the Bombay Stock Exchange (BSE).
Among the major gainers, Shree Renuka rallied as much as 18.05 per cent to Rs 15.89, but was still trading 37 per cent down from its 52-week high of Rs 20.40 hit on November 19 last year. Mawana Sugars surged 10 per cent to hit its 52-week high of Rs 23.21, Empee Sugar rose 9.95 per cent, while Balrampur Chini Mills advanced 4.20 per cent to hit a 52-week high of Rs 74.40.
Rating firm ICRA estimates India's sugar output to decline by 4.62 per cent to 26.8 million tonnes in the 2015-16 marketing year.
The estimate is, however, higher than the government's projection of 26 million tonnes of sugar output this year but slightly lower than industry body ISMA's estimate of 27 million tonnes for the same period.
"While the expected decline in the sugar stocks is positive, it may not result in a significant increase in the domestic sugar realisations as the closing stock would still remain high," said ICRA.