Shares of tea makers have rallied on the bourses on expectations that drought in Kenya may benefit the tea growers.
At 1443 hours, Jay Shree Tea & Industries (up 17% at Rs 77.75), Rossell India (up 10% at Rs 100), McLeod Russel India (up 7% at Rs 237), Goodricke Group (up 6% at Rs 143), Warren Tea (up 5% at Rs 135), CCL Products (up 4% at Rs 190), Bombay Burmah Trading Corporation (up 3% at Rs 527) and Tata Global Beverages (up 3% at Rs 139) were up 3-17% each on the Bombay Stock Exchange (BSE). The S&P BSE Sensex was down marginally by 0.02% at 28,203.
“Hot, dry weather in the African nation, the No. 1 exporter of black tea, is threatening to cut output, and a dip in global supply may help boost auction prices for McLeod Russel this year by as much as 8%,” chief financial officer Kamal Baheti said in an interview to Bloomberg.
“Since there's been a shortage of crop in the overseas markets, exports from India will increase and that will have a positive impact on the prices,” the report added.
Meanwhile, data posted on the Agriculture, Fisheries and Food Authority's website shows that Kenya's tea output plunged by 27% in the first quarter of 2015 from a year before due to dry weather conditions, the Reuters report suggests. CLICK HERE TO READ THE FULL REPORT.
At 1443 hours, Jay Shree Tea & Industries (up 17% at Rs 77.75), Rossell India (up 10% at Rs 100), McLeod Russel India (up 7% at Rs 237), Goodricke Group (up 6% at Rs 143), Warren Tea (up 5% at Rs 135), CCL Products (up 4% at Rs 190), Bombay Burmah Trading Corporation (up 3% at Rs 527) and Tata Global Beverages (up 3% at Rs 139) were up 3-17% each on the Bombay Stock Exchange (BSE). The S&P BSE Sensex was down marginally by 0.02% at 28,203.
“Hot, dry weather in the African nation, the No. 1 exporter of black tea, is threatening to cut output, and a dip in global supply may help boost auction prices for McLeod Russel this year by as much as 8%,” chief financial officer Kamal Baheti said in an interview to Bloomberg.
“Since there's been a shortage of crop in the overseas markets, exports from India will increase and that will have a positive impact on the prices,” the report added.
Meanwhile, data posted on the Agriculture, Fisheries and Food Authority's website shows that Kenya's tea output plunged by 27% in the first quarter of 2015 from a year before due to dry weather conditions, the Reuters report suggests. CLICK HERE TO READ THE FULL REPORT.