Sugar stocks look good: Vijay

Portfolio Manager, PN Vijay is of the view that sugar stocks are looking good.

Vijay told CNBC-TV18, "Two months ago I changed my view on sugar from neutral to positive because talking to sugar magnates one gets a feeling that they are smiling after a long time. The demand-supply situation is changing quite dramatically in the country and I think the huge movement in acreage to wheat and rice from sugar is going to have stole on the supply side in ’08-’09 crushing. So whatever be the global scenario I think the pricing power will come back to the sugar mills. They have all got beaten down anyway; so on a one-year timeframe sugar is good."

He further added, "Fertilizer is also not bad considering some of the moves the government has done on the fertilizers but when there is so much government control no serious institutional investor comes into those stocks. I have seen that they are very worried about the adhoc in the government policy, as we have seen in the oil marketing companies etc. So I think I will still keep a distance from fertilizers."

Disclosure: It is safe to assume that analyst and his client may have an investment interest in the above stock/sector.