Neppolian Pillai of Modern Shares & Stock Brokers is of the view that sugar space is a great investment buy on the downside.

Pillai told CNBC-TV18, "Sugar is one sector where probably people could invest, buy and hold kind of a strategy than a buy and trade strategy. So that sector is going to be slightly volatile when it is making the base. Most of the stocks had run up also largely, so for me on the longer perspective on the monthly or yearly charts, that looks fabulous. Every bad news has got to be bought into on the downside without looking eventually this sector will do very well; I think much more highs are on the offing for the sector. So any fall today because of this news is a buy for me. The top pick for me is Renuka Sugars followed by Bajaj Hindusthan and Balrampur Chini and the last will be the Triveni Engineering. So it is a great investment buy on the downside."

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