Sugar stocks witnessed a sweet rally post media reports suggesting that the Government might allow the sale of ethanol already produced from sugarcane juice and B-heavy molasses. On Wednesday, most of the sugar scrips closed in positive territory with a few sugar stocks ending the day in red.
The top gainers in the sugar stock basket were EID Parry at 627.7 (+3.1), Dhampur Bio at 139 (+2.36), Zuari Industries at 340.9 (+1.69), Shree Renuka Sugar at 46 (+1.43). Other sugar stocks that ended in green are Davangere Sugar, Vishwaraj Sugar, Rana Sugars, Dhampur Sugar, Ponni Sugar Erode, DCM Shriram Inds, Magadh Sugar, Bajaj Hindusthan, Triveni Engg. Ind.
Among the top losers in Wednesday’s closing were Bannari Amman Sugar, Uttam Sugar Mills, Avadh Sugar, Ugar Sugar Works, Dalmia Bharat, Sakthi Sugars, KM Sugar Mills, Mawana Sugars, Balrampur Chini, Dwarikesh Sugar, M.V.K. Agro, Rajshree Sugars, Kothari Sugars, KCP Sugar & Inds., Dollex Agrotech and Simbhaoli Sugar.
Stock market experts opine that profit booking in these stocks could have led to dip in these stocks.
According to sources, the quantity of ethanol lying with mills is equivalent to 8 lakh tonnes (lt) of sugar. Hence, the total quantity of sugar diversion for ethanol production may reach 25 lt, including 17 lt allowed for ethanol production in December last year.
