India’s only publicly traded producer of guar gum, Vikas WSP , has hit the upper circuit of 10% at Rs 43.50 on reports that the Forward Markets Commission (FMC) may decide on lifting the ban on guar futures trading by mid-August after assessing the sowing of the crop.
“National Commodity and Derivatives Exchange Ltd (NCDEX) has asked the regulator for permission to relist guar gum and guar seed futures,” reports suggest quoting R. Ramaseshan, CEO, NCDEX.
The futures trade in guar was banned in March after a ten-fold surge in prices on speculation.
Guar gum is extracted from guar seed, production of which is around on million tonnes in the country. India is the world's biggest exporter of the commodity and accounts for 80% of the world's guar production.
The stock opened at Rs 39.90 and has frozen upper circuit in late noon trades on the Bombay Stock Exchange (BSE). Around 1.7 million shares have changed hands on the counter so far and there are pending buy orders for 268,535 shares on the BSE.