Tea sector heating up: Brews for your morning cuppa

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Tea sector heating up: Brews for your morning cuppa

As the markets inch upto newer highs each day, there is a lot brewing in the tea sector as well. Experts give their views on this hot space, and stocks that one can focus on within it...

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets

The markets are witnessing some weakness today, after a strong uptrend of the past few sessions.

The market is volatile. At 11:28 am, the Sensex was down 15.76 points at 10157.49. It had touched an intraday high of 10185.06 and an intraday low of 10127.99. However, the Nifty was up 4.85 points at 3046. The CNX Midcap Index was up 23.75 points at 4482.65.

However, one space that has been heating up is tea, on the back of  crop failure in Kenya and rising international prices. Experts believe that as international prices rise, domestic companies will likewise benefit.

Experts have the tea sector on their radar, and advise on specific stocks that could be looked at now.

Deven Choksey of K R Choksey Securities: Tea prices to continue rising for the next six months to one year

Commodities is a different space all together, which has its cycles and goes up and down. The crop failure issue that has taken place in Kenya will act as a booster for tea prices in the next six months to one year. This will discount stock prices. Infact tea stock prices have gone up much ahead of fundamentals already. But we need to see if this sustains.

Investors who have these stocks must definitely hold and book profits at a huge rise, but those who do not have them, should not regret it as a correction could always come by. The best stocks from this space at this point are Tata Tea and McLeod Russel , as well as Warren Tea which is a very promising stock.