Shares of sugar makers surge on government’s ethanol push, but stagnant prices and supply risks threaten to spoil the party
The trend is expected to remain in favour of the bulls, despite intermittent profit booking in the upcoming sessions. Below are some short-term trading ideas to consider.
Stocks to watch, 16 May: Stocks like Onesource Specialty Pharma,One 97 Communications Paytm,Industrial Investment Trust, Alkem Laboratories, Bajaj Auto, Godfrey Phillips India, Endurance Technologies, Bikaji Foods International,Godrej Industries, Bharti Airtel, Infosys, JSW Energy, LIC Housing Finance, and Allied Blenders and Distillers will be in focus on May 16.
Sharekhan is bullish on Balrampur Chini Mills has recommended buy rating on the stock with a target price of Rs 673 in its research report dated November 13, 2024.
The consolidation and rangebound movement are expected to continue, given that volatility has risen to over an 11-week high. Below are some trading ideas for the near term.
Given the prevailing negative sentiment, the trend in benchmark indices is expected to favour bears in the upcoming sessions. Below are some trading ideas for the near term.
The minimum selling price of sugar has remained unchanged at Rs 31 per kg since February 2019.
Sugar stocks surged after the government greenlit the use of sugarcane juice and B-Heavy molasses for Rectified Spirit and Extra Neutral Alcohol production, boosting shares of major players like Bajaj Hindustan Sugar and Balrampur Chini Mills.
The government's recent decision to lift restrictions on ethanol production from sugarcane juice and B-heavy molasses routes is likely to drive up ethanol prices before the new season begins, DAM Capital said.
Now, in addition to cane juice and syrup, mills can also use B-Heavy and C-Heavy molasses to produce ethanol
Sharekhan is bullish on Balrampur Chini Mills has recommended buy rating on the stock with a target price of Rs 615 in its research report dated August 13, 2024.
Sugar stocks climbed up to 5% after reports that the government is considering raising ethanol prices to boost production and meet the 20% blending target by 2025-26.
The 24,400 level is expected to be key for the Nifty 50 , as consolidation may be seen below this level with support at the 24,000 mark. However, above the same, the index may march towards the 24,700 level, experts said. Here are some trading ideas for the near term.
For the full year, net profit surged by 88.08 percent, reaching Rs 534.47 crore compared to Rs 284.17 crore in FY23.