Shares of sugar companies are in limelight on the bourses on buzz of decontrol.
The Union government is expected discuss sugar decontrol at a meeting in the next 8-10 days, the newspaper report suggests, quoting agriculture minister Sharad Pawar.
With decontrol, the government will give up its control over the sector and sugar prices will be determined by the market forces.
Shree Renuka Sugars, Balrampur Chini Mills, Bajaj Hindustan, Simbhaoli Sugars, Bannari Aman Sugars and Oudh Sugar Mills have rallied more than 3% each.
Meanwhile, the government has issued a formal order for export of an additional 500,000 tonnes of sugar after receiving an approval by a panel of ministers. The Empowered Group of Ministers (EGoM) on food had also lowered the monthly quota of domestic sales for July to 17.72 lakh tonnes from 18.67 lakh tonne in the previous month.
Stocks of sugar companies closed with gains on the Bombay Stock Exchange (BSE) today amid media reports that the government may consider the proposal to decontrol the sector in a few days.
India's biggest sugar producer Bajaj Hindusthan, settled at Rs 74.35, up 4.13%. Simbhaoli Sugars ended at Rs 41.10, up 3.79% from its previous close.
The rally was evident in other sugar companies as well.
Balrampur Chini Mills settled 3.83% higher, Dhampur Sugar Mills (5.89%), Shree Renuka (6.50%), Oudh Sugar (4.91%), Uttam Sugar (1.30%) and Dwarikesh Sugar (4.03%).
However, EID Parry ended on a lower note and closed down by 1.11% at Rs 254.80. Meanwhile, the BSE 30-share key index Sensex finished the day at 18,814.48, up 51.68 points.