Export subsidy sweetens sugar stocks

Even though the benchmark indices continue to trade under pressure, most of the sugar stocks are witnessing an upward trend in Wednesday morning session on BSE.

It has been three trading sessions since the government approved the sugar export policy for evacuation of surplus stocks during sugar season 2019-2020 and the sugar stocks are following positive trend.

Shares of Simbhaoli Sugars (up 19.88 per cent with intraday high Rs. 7.78), Bajaj Hindusthan (up 19 per cent with intraday high Rs. 6.45), Sakthi Sugars (up 9.02 per cent with intraday high Rs. 8.70), Dharani Sugars & Chemicals (up 9.27 per cent with intraday high Rs. 11.79), Shree Renuka Sugars (up 10.23 per cent with intraday high Rs. 7.76) and Avadh Sugar (up 5.33 per cent with intraday high Rs. 224) were trading with a positive bias.

Rana Sugars (up 7 per cent with intraday high Rs. 2.45), Dwarikesh Sugar Industries (up 6 per cent with intraday high Rs. 22.90) and Triveni Engineering & Industries (up 3.51 per cent with intraday high Rs. 54.50) too were trading with gains.

However, Parvati Sweeteners and power (down 4.82 per cent with intraday low Rs. 0.79) and DCM Shriram Industries (down 4.76 per cent with intraday low Rs. 27) were among the top losers in same trading session. The BSE Sensex was trading 62.11 points down at 36500.80 at around 11.30 am.

The Union cabinet’s approval of export subsidy for 6 million tonne (MT) of sugar is a believed to have boost the sentiments across the sugar industry.