Sugar stocks turn sweet on hopes of favourable policies in UP
On NDTV Profit’s show Tips for Tomorrow, Ashutosh Sinha, Gaurang Shah, Assistant Vice President, Geojit BNP Paribas Financial Services and T S Harihar, Senior Vice President at ICICI Securities, discuss the market performance of the day.
Shares of sugar companies with large operations in Uttar Pradesh today gained value on expectations for a favourable policy regime in the state, where Samajwadi Party is set to form a new government.
Shares of Bajaj Hindusthan settled for the day 1.80 per cent higher at Rs 34, while Dhampur Sugar Mills rose by 0.50 per cent to Rs 40.15.
Oudh Sugar ended the day 0.38 per cent higher and Balrampur Chini Mills shot up by 3.30 per cent.
Analysts said that sugar stocks gained as the SP government in the past had been known as good for the sector.
Sugar cane prices have risen over the recent past, hitting industry margins during the tenure of BSP.
However, Dwarikesh Sugar and Triveni Engineering saw profit booking and fell by 0.84 per cent 2.20 per cent, respectively.
The Mulayam Singh Yadav-led party captured 224 seats in the 403-member House.
In the broader market, it was a highly volatile trading session and the benchmark Sensex ended 27.77 points lower at 17,145.52.