Sugar stocks were trading deep in the green on Monday after reports suggested that the Uttar Pradesh Government is likely to increase the State Advisory Price (SAP) for sugarcane. This announcement is likely to be made today and a price jump of ₹ 25 per quintal is expected for the season.
Moreover, analysts believe that rising crude oil prices and the weakening rupee are a few other factors fuelling the rise in sugar stocks. As a result, oil marketing companies will have to pay more to import oil as a result of the falling rupee and rising crude oil prices. Meanwhile, the Government hopes to meet its 20 percent ethanol blend target by 2025 and sugar stocks are expected to benefit in such a scenario.
Oil prices have risen to their highest level since November 2022, Brent Oil is trading near $ 88 per barrel and the rupee has depreciated in the past month. Experts expect supply reduction by OPEC experts.
Shree Renuka Sugars (up 10.83 percent), Ugar Sugar Works (up 4.60 percent), Mawana Sugars (up 3.57 percent), K M Sugars Mills (up 9.08 percent), Dalmia Bharat Sugar & Industries (up nearly 6.61 percent), Sakthi Sugars (up 7.19 percent), and Balrampur Chini Mills (up 3.16 percent) were all trading in the green zone.
Meanwhile, Triveni Engineering & Industries gained 8.06 percent to reach a fresh 52-week high of 340.60, Avadh Sugar & Energy gained 9.85 percent to touch a new 52-week high of 634.80 apiece and Bajaj Hindusthan Sugar zoomed 13.75 percent to hit a 52-week high of ₹ 28.55 apiece.
Written by Simran Bafna
