Sugar stocks rise on Maharashtra output concerns
Most of the sectoral indices were in green at the closing, with Nifty PSU Bank, Nifty Metal leading the way with gains of 1.64 and 1.49 per cent, respectively
Representative Image (IANS)
NEW DELHI: Sugar stocks, such as those of Dalmia Bharat Sugar, Balrampur Chini Mills, Triveni Engineering, Dwarikesh Sugar, and Shree Renuka rose on Thursday as a result of authorities reducing their projection for Maharashtra's output in crop year 2023–2024 by 14%, making it the lowest in four years, a market research analyst said.
Moreover one-third of India's sugar production is produced byMaharashtra, which will produce just 9 million metric tonnes of sugar in the season that starts on October 1 in 2023/24, down from 10.5 million tonnes in 2022-23. This can cause sugar prices to increase on both the domestic and international markets and fueled optimism in sugar stocks, Vaibhav Vidwani, Research Analyst, Bonanza Portfolio, said.
Most of the sectoral indices were in green at the closing, with Nifty PSU Bank, Nifty Metal leading the way with gains of 1.64 and 1.49 per cent, respectively.
UPL, Hindalco, Mahindra and Mahindra, ONGC, Divis Lab were among the top gainers on the Nifty whereas Asian Paints, HDFC Life, Coal India, Britannia and LTIMindtree were among the loser.