Tea Shares Hit Upper Circuit Filter

The stocks of tea companies hit the roof today on the news of 100 per cent foreign direct investment (FDI) being allowed in plantation firms.. Most tea stocks hit the upper circuit but receded later on profit taking.

Shares of Tata group company Tata Tea was closed at Rs 211, up 4.33 per cent, Goodricke was up 5 per cent at Rs 44.15, Warren Tea was up 5 per cent at Rs 77.85, Jayshree Tea closed higher by 5 per cent at Rs 53.60.

Major gainers among tea stocks were side counters which ended almost 20 per cent high. Shares of Dhunseri Tea and Hanuman Tea both ended locked at the upper circuit filter at Rs 28.80 and Rs 26.70, respectively. Assam Brooke and Assam Tea both closed higher by 19.87 per cent at Rs 28.65 and Rs 37.70, respectively.

William Magor closed higher by 19.78 per cent at Rs 16.35, Asian Tea was up 19.27 per cent at Rs 6.50, B&A was up 19.86 per cent at Rs 16.90.

Tata Tea surged sharply in the last few trading sessions on a proposal to allow 100 per cent FDI in the tea plantation sector. From Rs 156.60 on 31 May, it has climbed 33.7 per cent to the current Rs 209.50. Analysts say the latest move will boost valuations in the sector.

Foreign investors can invest up to 100 per cent in tea plantations on condition that they divest 26 per cent stake in the domestic market in five years.