Indian sugar mills association

Sugar stocks rally up to 18% on production worries globally

Date:	19 Sep 2016

Source:	The Economic Times

Reporter:	ETmarkets.com

News ID:	5982

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NEW DELHI: Sugar stocks soared up to 18 per cent on Monday amid hopes weak supplies globally may lift sugar prices further highs. The stocks have rallies even as experts believed the valuations have turned expensive and there is little scope of further upside.

Data showed Piccadily Sugar & Allied Industries zoomed 17.71 per cent to Rs 8.24. Dharani Sugars & Chemicals surged 12.94 per cent to Rs 38.85. Dalmia Bharat Sugar climbed 12 per cent to Rs 126.90. Mawana Sugars, Dhampure Speciality Sugars and KM Sugur Mills climbed 9.07 per cent, 8.01 per cent and 6.84 per cent, respectively.

Big sugar players Balrampur Chini, Shree Renukaand Bajaj Hindusthan Sugar gained up to 4 per cent in early trade. Sugar stocks had surged up to 530 per cent in one year to Friday.

Analysts believe that a drop in production and steady demand may keep sugar prices stable.

Nonetheless, gains in sugar stocks could be limited as valuations appear stretched and prices may not rise in a big way going ahead.

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