Hopes of MSP hike and ethanol policy adjustments drive sugar stocks higher
Sugar stocks saw an intraday rise on June 21 before retreating. By 11:50 AM, Dalmia Bharat Sugar, Balrampur Chini Mills, Bajaj Hindusthan Sugar, Dwarikesh Sugar, Uttam Sugar Mills, and Shree Renuka Sugars gained 0.3-2.0 percent. Sanjay Manyal, a research analyst at DAM Capital, cited expectations of a possible MSP increase for sugar from Rs 31 per kg to Rs 35-36 per kg as a key reason for the interest.
Sugar stocks drew attention with a sudden intraday increase on June 21, though they quickly retreated from their day’s highs.
Around 11:50 AM, Dalmia Bharat Sugar and Industries, Balrampur Chini Mills, Bajaj Hindusthan Sugar, Dwarikesh Sugar Industries, Uttam Sugar Mills, and Shree Renuka Sugars saw gains of 0.3-2.0 percent.
Sanjay Manyal, Research Analyst at DAM Capital, highlighted three key reasons for the recent focus on sugar stocks.
Manyal anticipates that the Minimum Support Price (MSP) for sugar could potentially increase from the current level of Rs 31 per kg to around Rs 35-36 per kg. This demand arises from the industry, prompting expectations that the government may consider this adjustment.
