Sugar stocks become sweet again!

Sugar stocks are up in the green today. Balrampur Chini is the top gainer on the BSE since opening bell, going up 5% at Rs.121.80, Shree Renuka also went up 5% to Rs.13.84, Bajaj Hindusthan is up 2% at Rs.13.68. Upper Gangs has breached the 10% UC at Rs.271.50.

Explaining the reason for this bounce back of sugar stocks on the bourses; our Editor Mr.SP Tulsian, who has all along been extremely bullish on this sector explained, “Maharashtra mills have started closing down and about 80% Karnataka and Maharshtra mills will stop crushing by 31-3-16, which ran till 31-3-16 last year. UP will see production of 70 lak pus tonne of Sugar this season against 69 lakh tonnes of last year and mills will close after 10-4-17, which closed by 31-3-16 last year. This year sugar production in no case will be above 215 lakh tonnes against 250 lakh tonnes last year. ISMA had its meeting last week, where one prominent Union Minister from Maharshtra was also present and all were worried about this grim situation. Expect sugar prices to move up from 1-2-17 as all will be seen giving a buy call on Sugar stocks only from 1st week of February. If one wants to make money in the market, buy low and sell when there is euphoria. But many of us want to do other way.”