Sugar stocks rally up to 15% led by Uttam Sugar on back on heavy volumes

A combine harvester cuts sugar cane in a field at the Sao Martinho sugar mill in Pradopolis, Brazil September 13, 2018. REUTERS/Paulo Whitaker - RC1695265D20

Sugar stocks are the top gainers from the BSE smallcap space or otherwise have rallied up to 15 percent on the BSE backed by heavy volumes.

Uttam Sugar Mills zoomed close to 15 percent in the afternoon session and saw spurt in volume by more than 1.58 times followed by Dhampur Sugar which added 13 percent and witnessed spurt in volume by more than 1.05 times. The other gainers include Bajaj Hindusthan which is up 12 percent. The stock saw spurt in volume by more than 1.08 times while Dwarikesh Sugar is up 11 percent. Dalmia Bharat Sugar is the other stock which jumped 10 percent. Balrampur Chini gained over 7 percent.

Most of the sugar stocks have outperformed the market by rallying up to 70 percent after the Cabinet Committee on Economic Affairs approved a comprehensive policy package of Rs 5,500 crore on September 26, 2018, to improve the liquidity of sugar mills and provide assistance for clearing cane arrears.

Last month, the government also increased prices of Ethanol thereby triggering the surge in share price.