JP Sinha bearish on sugar space

Jayprakash Sinha of Mangal Keshav is bearish on the sugar space.

Sinha told CNBC-TV18, "We continue to remain bearish on the sugar pack. I do not know whether the prices are likely to sustain at the current level despite knowing the fact that there could be some lower production from Brazil side or there could be some shortfall in terms of demand supply globally which is around 1 million tonne, which is been talked about. Having said that I still do not know whether the domestic prices are likely to sustain at the level, which they are and that doesn’t augur well because the cost are rising, you have already got into high leverage balance sheet which itself maybe dragged. So I would rather ignore this sector at this point in time.”

Disclosure: Analyst doesn't hold the above stock.