Nestle India Ltd. (NEST), a unit of the world’s largest food company, and Dabur India Ltd. (DABUR) climbed in Mumbai trading amid a drop in global prices of raw materials including palm oil and sugar.
Nestle jumped 4.7 percent to 4,300.05 rupees at 2:08 p.m. local time, set for the highest level since at least 1991, and is the best performer on the Bombay Stock Exchange Fast Moving Consumer Goods Index. Dabur, which makes packaged honey, hair oil and traditional medicine, advanced 2.3 percent to 116.6 rupees, bound for the biggest gain in more than two weeks.
While palm oil dropped for a second day on the Malaysia Derivatives Exchange, extending this year’s loss to 20 percent, raw-sugar futures traded in New York retreated for a third day, losing 1.7 percent. The Standard & Poor’s GSCI Total Return Index of 24 materials lost 5.3 percent in June, helping the gauge to first quarterly fall since the period ended June 2010.
“Costs of key raw materials for them like palm oil, and agricultural commodities like wheat and sugar, are falling,” said Varun Lohchab, an analyst at Religare Securities Ltd. in New Delhi. “The monsoon seems to be doing reasonably well.”
India’s monsoon rainfall, the main source of irrigation for the country’s farmers, was the highest in three years, the weather office said yesterday, spurring plantings of rice, lentils and soybeans in a country where agriculture accounts for one-fifth of the economy.
-- With assistance from Pratik Parija in New Delhi. Editors: Ravil Shirodkar, Matthew Oakley
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