Shares of sugar companies surged up to 10 percent on Wednesday amid expectations of higher ethanol blending following disruptions in global oil supplies due to the West Asia conflict.
According to a market update shared by CNBC-TV18 on X, investor interest in sugar stocks strengthened as concerns over oil supply pushed up energy prices. Higher crude prices are seen improving the prospects for ethanol, which is blended with petrol, thereby boosting sentiment around sugar producers.
At around 11:30 am, major gainers included Balrampur Chini Mills, which rose 7.63 percent to Rs 493.20. Shree Renuka Sugars climbed 8.22 percent to Rs 25.41. Dwarikesh Sugar Industries advanced 9.46 percent to Rs 39.58, while Bajaj Hindusthan Sugar led the rally with a 10.70 percent jump to Rs 17.28.
Market participants said that as oil supplies face uncertainty due to the ongoing Israel-Iran conflict, the likelihood of higher ethanol blending has increased. Since sugar mills in India divert part of their output to ethanol production, stronger ethanol demand is viewed as positive for company revenues.
