Sugar stocks advance on hopes of volume driven biz

Sugar stocks advance on hopes of volume driven biz

Sugar stocks advanced at 11:51 IST on BSE after the Indian Sugar Mills Association said that sugar production in the current sugar season has grew by 29.8% to 69.40 lakh tons as of 15 December 2017 over corresponding period last season.

Triveni Engineering & Industries (up 5.08%), Balrampur Chini Mills (up 3.49%), Shree Renuka Sugars (up 3.44%), Bajaj Hindusthan Sugar (up 2.86%), Rana Sugars (up 2.04%), KCP Sugar & Industries (up 1.47%), Dhampur Sugar Mills (up 1.31%), Dwarikesh Sugar Industries (up 0.78%) and Sakthi Sugars (up 0.42%) advanced. DCM Shriram Industries (down 1.55%) dropped.

Meanwhile, the S&P BSE Sensex was up 115.55 points or 0.34% at 33,717.23.

According to the Indian Sugar Mills Association (ISMA), the number of mills crushing sugar has increased to 469 as on 15 December 2017, from 449 last year same time. ISMA estimates a normal sugar production of 251 lakh tons in 2017-18 sugar season, as compared to a production of only 203 lakh tons last year.

With buying interest improving and also the stock holding limit on traders being removed, the market is expected to increase their buying, which can have a positive impact on the sales and market sentiments, which in turn is already having a stabilizing effect, ISMA said.

ISMA had recently asked the government to seek preferential duty structure from Bangladesh and Sri Lanka for Indian sugar, which is expected to be in surplus on account of higher output estimates for the 2018-19 marketing year.

Source: business-standard:Published on 2017-12-19