Stay away from sugar stocks: SP Tulsian

SP Tulsian, sptulsian.com advises traders to stay away from sugar stocks.

Tulsian told CNBC-TV18, “Sugar stocks are all buy on the rumor and buy on the hopes and sell on the news so obviously you have the news now lined up which may come at any point of time which is largely the dismantling of the levy quota of 10 percent which will give an extra realization of about Rs 1 per kilogram to all the sugar mills. However, I don’t think that it will be really long lasting. The moment you see that news coming in practically the profit booking will be seen in all the stocks.”
He further added, “My only positive bias continues to remain on the Tamil Nadu based sugar mills maybe like the EID Parry or maybe like the stocks like Bannari Amman Sugar or to some extent in Renuka Sugar who has the presence in Karnataka or maybe company like KCP Sugar who has the presence in Andhra Pradesh. However, by and large I will remain away from all the sugar stocks.”