A sharp drop in daily Covid-19 cases perked up bulls on Dalal Street on Monday as investors hoped for a sooner-than-expected taper down of the second wave. However, even though the new case count, at over 366,000 and 3,754 deaths, were off a little from recent peak, it came on the back of 1.47 million tests for Covid-19 which were this month s lowest yet. Nonetheless, domestic equity indices started gap-up and remained parked near the day s high level for the better part of the day. Among the frontline indices, the BSE barometer of 30-shares hit an intra-day high of 49,617 before ending the session at 49,502 levels, up 296 points or 0.6 per cent. About seven of the 30 constituents ended the day in the red including UltraTech Cement, Infosys, HCL Tech, Reliance Industries, Asian Paints, Bajaj Finserv, and Axis Bank. The stocks declined up to 1.3 per cent.
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.
Sugar stocks on a sweet ride, but low volume turns analysts cautious
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Sugar stocks have been seeing a rally of their lifetime, as rising international prices and increased demand for ethanol from oil market companies (OMCs) have raised their outlook.
Sugar stocks have surged up to 90%.
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NEW DELHI: Even as rising Covid-19 cases have tamed the speed of the equity bulls, there are some pockets in the market that have remained virtually unaffected. Stocks of often-overlooked sugar makers are one such pack.
Sugar stocks have been seeing a rally of their lifetime, as rising international prices and increased demand for ethanol from oil market companies (OMCs) have raised their outlook. In the last one month, these stocks have surged up to 90 per cent.
“On the upside, there is stiff resistance at 14,700 and until we do not get past that, we will not enter a bullish trend. It is a tight range and traders need to be cautious in their approach,” said Manish Hathiramani, technical analyst at Deen Dayal Investments.
Avadh Sugar & Energy Ltd has added 65.47% over last one month compared to 1.59% fall in S&P BSE FMCG Sector index and 2.39% drop in the SENSEX
Avadh Sugar & Energy Ltd fell 7.11% today to trade at Rs 312.15. The S&P BSE FMCG Sector index is down 0.1% to quote at 12663.09. The index is down 1.59 % over last one month. Among the other constituents of the index, Dalmia Bharat Sugar & Industries Ltd decreased 4.39% and Uttam Sugar Mills Ltd lost 1.92% on the day. The S&P BSE FMCG Sector index went up 22.35 % over last one year compared to the 53.98% surge in benchmark SENSEX.
Avadh Sugar & Energy Ltd has added 65.47% over last one month compared to 1.59% fall in S&P BSE FMCG Sector index and 2.39% drop in the SENSEX. On the BSE, 45606 shares were traded in the counter so far compared with average daily volumes of 36050 shares in the past one month. The stock hit a record high of Rs 345 on 04 May 2021. The stock hit a 52-week low of Rs 117.65 on 20 May 2020.