Shree Renuka Sugars ended locked in the 10 per cent upper circuit.
“These stocks are gaining because sugar prices have gone up in the international market and because of government’s ethanol policies. Ethanol mixing in petrol was about 5-6 per cent and government has given a mandate to increase it to 20 per cent by 2025,” said independent advisor Ambareesh Baliga.
“Now, ethanol can be manufactured directly from sugar. This will ensure sugar inventory is not too high,” said Baliga.
Stocks such as Avadh Sugar, Uttam Sugar, Triveni Engineering, Dwarikesh Sugar, Shree Renuka and Bajaj Hindusthan have gained 40-87 per cent in the last one month. All the sugar companies are in the green for 2021 calendar year, gaining 10-55 per cent.
Shares of sugar companies were on a roll at the bourses, on Monday, with Bajaj Hindustan, Dwarikesh Sugar Industries, Dhampur Sugar Mills, Avadh Sugar & Energy, Uttam Sugar Mills and Dalmia Bharat Sugar and Industries rallying between 15 per cent and 20 per cent, in an otherwise weak market, on healthy outlook.
Triveni Engineering & Industries, EID Parry, Shree Renuka Sugars and Balrampur Chini Mills gained in the range of 10 per cent to 12 per cent. In comparison, the S&P BSE Sensex was down 0.61 per cent at 48,484 points, at 02:03 pm.
Most of the brokerages have positive stance on India’s sugar industry as it is well poised to benefit from global and domestic factors. Lower output from countries like Brazil, Thailand and the EU would keep supplies tight and global prices firm, enabling India to increase exports. On the domestic front, favorable policies, rising ethanol demand (blending target of 20 per cent by CY25 from 8 per cent currently), aggressive ethanol capacity additio
The domestic indices continued trading with losses in early afternoon trade. The Nifty index traded above 14,550-mark. Mounting COVID-19 cases continued in the country and a negative trend in Asian equities spoiled sentiment.
At 12:20 IST, the barometer index, the S&P BSE Sensex, fell 329.20 points or 0.67% at 48,453.16. The Nifty 50 index lost 75.40 points or 0.52% at 14,555.70.
In the broader market, the S&P BSE Mid-Cap index slipped 0.43% while the S&P BSE Small-Cap index rose 1.14%.
The market breadth was positive. On the BSE, 1,577 shares rose and 1,244 shares fell. A total of 169 shares were unchanged.
Derivatives:
The NSE s India VIX, a gauge of market s expectation of volatility over the near term, rose 1.06% to 23.2725. The Nifty 27 May 2021 futures were trading at 14,606.25, at a premium of 50.55 points as compared with the spot at 14,555.70.
Domestic equity markets staged a smart recovery in the fag end of the session, lifted mainly by metal and FMCG stocks, to end mixed on Monday even as losses in the banking counters capped gains. Among the headline indices, the BSE barometer S&P BSE Sensex settled the day at 48,716 levels, down 64 points or 0.13 per cent. The index hit a low of 48,028 in the opening deals but rose swiftly through the day to touch a high of 48,863 in the late noon deals. On the NSE, the Nifty50 index closed at 14,634 levels, up 3 points or 0.02 per cent, after hitting an intra-day high of 14,674.
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