Sugar Stocks Rally Sharply on Festive Demand Before Cooling Off
· Business · Economic Times
Sugar stocks recorded a sharp rally this week, hitting fresh record highs as prices climbed amid soaring demand ahead of festivals such as Ganesh Chaturthi, Dussehra and Diwali. However, the stocks erased some of those gains on Friday after the government allowed duty-free imports of 1 million metric tonnes of raw sugar until October 31. Balrampur Chini Mills surged about 25% earlier in the week to reach a 52-week high of Rs 780.95 on the NSE before closing down 5% on Friday at Rs 729. Triveni Engineering and Industries jumped roughly 18% mid-week to touch a high of Rs 314.90 before dropping 2% on Friday to close at Rs 295.28. Bajaj Hindusthan Sugar and Shree Renuka Sugars also experienced similar mid-week surges before pulling back at the end of the trading session.
Why it matters
Retail investors and market participants tracking the sugar sector saw significant volatility as domestic price spikes clashed with government import interventions. The duty-free raw sugar imports directly impact domestic sugar mill margins and share valuations across major producers.
Read the original report — Economic Times
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