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Bajaj Hindusthan Sugar (up 6.93%), Simbhaoli Sugars Mills (up 6.28%), Balrampur Chini Mills (up 2.30%), DCM Shriram Industries (up 2.34%), Shree Renuka Sugars (up 2.56%), Triveni Engineering & Industries (up 0.77%), and EID Parry (India) (up 0.66%) witnessed a surge in their stock prices.
The Nifty 50 index was up 2.40 points, or 0.01% at 18,636.95.
Sugar prices surged in the international commodities market on Thursday, as fund buying drove the rally. The uptick was triggered by the U.S. Climate Prediction Center's announcement that El Niño criteria have been met. This weather pattern typically results in heavy rainfall in Brazil and drought in India, which negatively impacts sugar crop production.
The last time El Niño caused dryness in Asian sugar crops was in 2015 and 2016, leading to a surge in prices. India, the world's second-largest sugar producer, is particularly vulnerable to deficient monsoon rains associated with El Niño.
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