Sugar stocks on a streak of profits
Sugar stocks have been on the rise. Analysts are optimistic about the companies’ profits. Brazil’s sugar output decreased by 23% in late March, which resulted in a gain in global prices. At the same time, there are expectations of a rise in exports from India.
India had opened the 2020-21 October-September sugar season with an initial inventory of 10.6 million tonnes. April output is forecast to reach 29.90 million tonnes and an export to touch 6 million tonnes. Furthermore, 8-9 million tonnes of the surplus is expected.
This year, shares of one of the fastest-growing sugar businesses in India, Dalmia Bharat Sugar & Industries, have soared 100%. Meanwhile, Triveni Engineering & Industries shares have gained 92%. Balrampur Chini Mills has hiked by 77%. Also, Dhampur Sugar Mills, DCM Shriram Industries, Bannari Amman Sugars, and Bajaj Hindustan Sugar have made notable improvements.
In a weak market, the sugar industry rallied by around 15-20%.
Indian Sensex started with gains but erased profits soon
Domestic indices had opened higher on Tuesday as investors witnessed a decrease in the number of Covid-19 infections. However, they erased gains soon to trade flat since risks remain high.
So far, the S&P BSE Sensex reached its high of 48,996.53 and a low of 48,521.85. As for Nifty, it has moved between 14,580.15 and 14,723.40.
Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments, stated that Nifty remains unsure of its direction. Strong support lies at 14,400, which it can not break, and solid resistance level is at 14,700, which it is unable to get past convincingly.
The market is expected to remain resilient, supported by the positive news on the coronavirus pandemic. Based on the latest data, covid-19 infections have dropped steadily in 13 states, including Maharashtra.
This can further support the trade. Quarter 4 results continue to be good across sectors.
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