The week that was: Sugar & healthcare stocks surge; metal counters lose sheen
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For the week, the benchmark BSE Sensex shed 473.93 points or 0.96 per cent to settle at 48,732.55, whereas the broader NSE Nifty 50 barometer declined 145.35 points or 0.98 per cent to 14.677.8.
Better-than-expected readings on CPI and industrial production, and in-line Q4 earnings reports failed to lift investors sentiment on Dalal Street.
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NEW DELHI: Domestic equity markets saw rangebound trade with a negative bias last week amid mixed cues. The holiday-truncated week was affected by concerns about rising US inflation, issues related to the supply of vaccines and surging Covid-19 infections in India, which led to the extension of lockdowns in the majority of the states. Better-than-expected readings on CPI and industrial production, and in-line Q4 earnings reports failed to lift investors sentiment on Dalal Street.
Shree Renuka Sugars ended locked in the 10 per cent upper circuit.
“These stocks are gaining because sugar prices have gone up in the international market and because of government’s ethanol policies. Ethanol mixing in petrol was about 5-6 per cent and government has given a mandate to increase it to 20 per cent by 2025,” said independent advisor Ambareesh Baliga.
“Now, ethanol can be manufactured directly from sugar. This will ensure sugar inventory is not too high,” said Baliga.
Stocks such as Avadh Sugar, Uttam Sugar, Triveni Engineering, Dwarikesh Sugar, Shree Renuka and Bajaj Hindusthan have gained 40-87 per cent in the last one month. All the sugar companies are in the green for 2021 calendar year, gaining 10-55 per cent.