Stock market closes with modest gain amid unchanged US Fed policy stance
Sensex closed with a gain of 128 points, or 0.17%, at 74,611.11 while the Nifty settled at 22,648.20, up 43 points, or 0.19%.
It is a combination of lower production forecasts, higher demand for the commodity and firm international prices that are driving sugar companies higher on Dalal Street. While the overall markets are consolidating in a narrow trading range, sugar stocks are getting fatter by the day as analysts predict a lower sugar output and mandis report higher sales of the sweetener. Overall 34 sugar stocks rose compared with just 3 that fell on the National Stock Exchange.
Hopes that the government will not tweak the 40 percent import duty on the commodity are also making the bulls more confident on sugar companies. As a consequence, sugar has been on an uptrend over the last two weeks on the commodity bourses. Prices gained by between 50-60 rupees a quintal in the mandi at Mumbai as offtake from consumers rose during the wedding season. Global prices of the sweetener have surged nearly 10 per cent in the past two weeks.
Meanwhile, the heaviest gains were reserved for sugar companies based out of Uttar Pradesh, which is soon headed for local elections. Analysts expect politicians to keep the business environment positive ahead of the 7-phase voting, which is slated between February 11 and March 8.
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Here are some stock prices in trade today:
Piccadilly Sugar surged 9.6 per cent to 10.95 rupees. Triveni Sugars jumped 7.5 per cent to 73.10 rupees. Mawana Sugars gained 7.1 per cent to 57.70 rupees. Upper Ganges Sugar rose 5 per cent to 375 rupees.
Sector leaders Balrampur Chini was up 2.9 per cent to 140.45 rupees. Dhampur Sugars advanced 5.4 per cent to 172.25 rupees and Shree Renuka Sugars advanced 4.9 per cent to 16 rupees.
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