Reuters Market Eye - Shares in Uttar Pradesh-based sugar companies were trading lower after the state raised the price at which sugar mills buy the new season crop by up to 16 per cent to 290 rupees per 100 kg.
Morgan Stanley said in a note the hike in the price of cane in the current sugar season by 2,920 rupees per tonne is much higher than expectations of a 2,820 rupees pertonne hike.
"Profitability of north Indian millers is likely to be dented," it added.
The hike in procurement price will increase the cost of production, which, at around 35,000 rupees per tonne, is comparable to the current spot sugar prices, implying "no profits for the sugar division at the operating level," Morgan Stanley added.
Shares of Balrampur Chini (BACH.NS) fell 5 percent and Bajaj Hindusthan (BJHN.NS) was down 1.25 percent, while Shree Renuka Sugars (SRES.NS) fell 2.1 percent.
E-commerce, bags to drive Asian plastics demand growth through 2017
SINGAPORE Asian shoppers' fondness for buying on the internet along with the region's steady economic growth should boost Asia's plastics demand for the next two years.
Oil prices dip on stronger dollar; rise in U.S. crude stocks data
SINGAPORE Crude oil futures fell in early trade on Wednesday as the U.S. dollar held around three-week highs and industry stocks data indicated a build in U.S. crude inventories.
Pru's UK staff take industrial action over Mumbai job plan
LONDON Staff at British insurer Prudential are taking industrial action over plans to move 76 jobs to Mumbai from the southern English town of Reading, the Unite union said.