| The gainers in the sector included Williamson Tea, which surged 19.99 per cent to Rs 358.6; Warren Tea, which also jumped 19.99 per cent up to Rs 144.65; Jayshree Tea, up 9.98 per cent to Rs 181.85; Harrisons Malayalam, also up a similar 9.87 per cent to Rs 167.5; Tata Coffee, which rose 9.3 per cent to Rs 368.55; and Tata Tea, up 7.17 per cent to Rs 989.75. All these scrips have done well over the last one month. |
| Dealers said tea auction prices in south India have recently grown significantly. |
| The shortfall in tea production in Kenya, where prices have grown 35 per cent in two months, and globally has also played its role in aiding the uptrend in India. |
| Moreover, according to Deepak Jasani, head - retail research, HDFC Securities, the full benefits of the fall in Kenyan production are yet to be visible in India. |
| "We may be seeing the first upmove in the tea stocks and, after a possible correction, there could be further upward movement. The momentum in these stocks at present is primarily driven by traders' buying. Institutional interest is yet to come in the sector as it is under researched," added Jasani. Tea stocks in India are also under-owned. |
| Tea has been one of the last commodities to join the rally in the markets. |
| Analysts feel that the tea plantation business is on a cyclical upturn, and since most companies own the plantations, input costs can be kept under control. |
| Moreover, even as the demand for tea has been increasing, there have been no major investments in tea plantations in the past five years. |
| Most importantly, the auction season that starts in the northern India in March is expected to see greater growth in tea prices, and this has perked up the sentiment, according to the analysts. |
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