Shares of 15 sugar firms rose by 1.28% to 15.32% on BSE after global raw sugar futures spiked to a one-year high as fire at major sugar warehouses in Brazil prompted fears of a supply squeeze.
Rana Sugars (up 15.32%), Dwarikesh Sugar Industries (up 10.62%), Shree Renuka Sugars (up 10.26%), Triveni Engineering & Industries (up 10.04%), Sakthi Sugars (up 9.99%), EID Parry (India) (up 6.96%), Oudh Sugar Mills (up 5.71%), Upper Ganges Sugar & Industries (up 4.91%), Empee Sugars and Chemicals (up 4.29%), Bajaj Hindusthan (up 3.74%), Dhampur Sugar Mills (up 3.27%), DCM Shriram Industries (up 3.23%), KCP Sugar & Industries Corporation (up 2.05%), Balrampur Chini Mills (up 1.74%) and Eastern Sugar & Industries (up 1.28%), edged higher.
The S&P BSE Sensex fell 28.92 points, or 0.14% at 20,864.97.
A blaze on Friday, 18 October 2013, at Copersucar-controlled warehouses in Santos (Brazil) paralysed operations of the world's biggest sugar trader. It could reportedly put 10 million tonnes of export capacity offline for six months or more.
International sugar markets reacted quickly after news of the fire. ICE March raw sugar prices rose more than 6% to a one-year high of 20.16 cents on Friday, 18 October 2013, before paring gains. The March contract settled down 0.26% at 19.45 cents per pound on Monday, 21 October 2013.
A supply squeeze from Brazil could help domestic companies export more sugar and trim their inventory, media reports suggested.
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