SP Tulsian of sptulsian.com in an interview to CNBC-TV18 shares views on sugar stocks like Shree Renuka, Balrampur and Bajaj Hindusthan.
With 2G corporates getting balied, from the three pockets, Tulsian has extreme positive view on DB Realty followed by Reliance Communication but has least positive view on Unitech. Below is the edited transcript of Tulsian's interview with CNBC-TV18. Also watch the accompanying video. Q: There has been a sudden crack in some of sugar names, the likes of Shree Renuka, Balrampur, Bajaj Hindusthan. What have you made of the deep pressure there? A: The moment we see that government allows these kinds of exports, global sugar prices get corrected. We have seen that same trend today also. It has fallen to about USD 610-615 which was ruling at about USD 640-645 couple of days back. But this has been a regular phenomenon whenever government allows one million tonne exports which we have seen happening in tranches. In the last season also they allowed it on three occasions. Whenever such announcements come, global prices soften. Inspite of that no commodity has started exporting. So, this can be seen as more of a knee-jerk reaction or technical correction. Secondly, if the white sugar keeps ruling at around USD 600-610, not much of sugar can be exported. This is because then there will be arbitrage of maximum Rs 1-1.50 per kilogram. So, this could be the reason for the technical corrections seen post opening of global market at 2 oDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
