- Sugar stocks are up, as the market fell drastically today.
- FIIs are selling shares due to rising US bond yields, but they are investing in sugar stocks, PSU banks and metal stocks.
- The blending of ethanol in fuel means more business for sugar stocks, and they have strong quarterly results.
Sugar stocks are up as the market fell today. The BSE Sensex has fallen by more than 1100 points today and is at 57467points, while the Nifty has fallen by more than 340 points and is at 17170 points, as of 2:40 pm on Monday.
Crude oil prices and heavy selling by FIIs amid rising US bond yields has caused the market to fall. FIIs are selling their investments in ICICI bank, HDFC twins, Kotak Bank, Infosys, Reliance Industries and more. However, there is good buying happening in PSU banks, metal stocks and sugar stocks.
Some of the top gainers in the sugar industry were Ugar Sugar Works(up 20.00%), Uttam Sugar Mills(up 12.86%), Rana Sugars(up 6.59%), Mawana Sugars(up 5.82%), MAGADHSUGAR(up 5.38%), K.M.Sugar Mills(up 4.33%), Simbhaoli Sugars(up 4.12%), KCP Sugar & Industries(up 3.89%), Rajshree Sugars & Chemicals(up 3.80%) and Sakthi Sugars(up 3.68%).
Most of these stocks have gone up due to strong quarterly results and the government’s increased thrust on ethanol blending in fuel.
“Blending of fuel is a priority of this government. To encourage the efforts for blending of fuel, unblended fuel shall attract an additional differential excise duty of ₹2/ litre from the 1st day of October 2022,” Finance minister, Nirmala Sitharaman said in her Budget speech.
Ethanol is a byproduct of sugar and India has plans to blend 20% ethanol in petrol and diesel by 2025, this will lead to an upside in sugar stocks.
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