Sugar stocks extended rally on Wednesday on hopes of higher realisations on account of low production of sugar during this monsoon season.
Hopes of higher realisation have gone up after patchy rains hit sugar production in the key state of Maharashtra and adjoining parts of Karnataka.
Sugar traders said, 'Higher realisation will improve cash flow and debt position of sugar companies.'
Simbhaoli Sugars gained the most with rise of 9.59% followed by Triveni Engineering & Industries (5.84%), Parrys Sugar Industries (5.47%), Kesar Enterprises (5%), Uttam Sugar Mills (4.96%), Dwarikesh Sugar Industries (4.96%), Girdharilal Sugar & Allied Industries (4.94%), Indian Sucrose (4.90%), Shree Renuka (4.74%), Balrampur Chini Mills (4.79%) and Piccadily Agro Industries (4.02%).
However, Indian markets dropped on Wednesday erasing earlier gains. At 1.59 p.m, the Sensex was trading down 263.39 points or 1.02% at 25,601.08 with 24 components falling. Meanwhile, the Nifty was trading lower by 80.00 points or 1.02% at 7,757.55 with 43 components falling.
