Balrampur Chini, EID Parry, Dalmia Bharat, Shree Renuka Sugars: Sugar stocks fall up to 7% today; here's why -
Shares of Balrampur Chini Mills Ltd (4.12%), Shree Renuka Sugars (6%), EID Parry (3%), Dalmia Bharat Sugar (6%) and Triveni Engineering (3.2%) were among the top sugar sectoral losers today.
Shares of sugar sector firms such as Balrampur Chini Mills Ltd, EID Parry, Dalmia Bharat Sugar & Industries, Triveni Engineering,Bajaj Hindusthan Sugar and Shree Renuka Sugars slipped up to 7% in early deals on Monday after the government asked oil marketing companies to decrease sugar diversion for ethanol production for blending in petrol to zero for the 2026/27 supply year.
The government's move is aimed to protect domestic sugar supplies while sustaining its nationwide petrol-blending programme.
Shares of Balrampur Chini Mills Ltd (4.12%), Shree Renuka Sugars (6%), EID Parry (3%), Dalmia Bharat Sugar (6%) and Triveni Engineering (3.2%) were among the top sugar sectoral losers today.
Balrampur Chini Mills shares fell 4.12% to Rs 693 in the current session. Market cap of the sugar firm slipped to Rs 14,916 crore.
Dalmia Bharat Sugar & Industries stock cracked 6% to Rs 452.40. Market cap of the sugar firm fell to Rs 3819 crore.
EID Parry stock too slipped 3% to Rs 678. Market cap of the firm stood at Rs 12,152 crore.
On similar lines, Triveni Engineering shares lost 3.2% to Rs 242.35. Market cap of the firm stood at Rs 5518 crore.
Shree Renuka Sugars shares too fell 6% to reach Rs 20.70 in early deals. Market cap of the sugar firm fell to Rs 4478 crore.
Bajaj Hindusthan Sugar shares fell 7.42% to Rs 19.69. Market cap of the firm slipped to Rs 4817 crore.
The decision restricts sugar mills’ flexibility to divert sugarcane and molasses between sugar production and ethanol manufacturing in response to market conditions. This could put pressure on profit margins and lower returns on investments made to expand ethanol production capacity.
The move is intended to boost domestic sugar supplies and bring down prices, which have surged to record highs in India, the world’s largest sugar-consuming market.
Related Stories
Gold prices near Rs 1.47 lakh/10 grams, silver falls by Rs 1,144/kg as traders await Fed rate signals. What lies ahead?
Gold prices edged lower while silver fell on MCX as investors awaited the US Federal Reserves upcoming policy decision for clues on interest rates. Traders expect rates to remain unchanged in October, with a possible hike in December. Analysts say dollar strength may cap golds upside, while central bank buying supports longer-term prices.
Infosys, TCS, Coforge, HCL Tech, TechM, Sagility: Selective rerating ahead, Jefferes shares target prices -
Infosys and TCS are seen as large IT companies offering 20 per cent-plus rerating potential in the best case. Sagility stands out among mid-sized companies, Jefferies said.
YES Bank share price targets: Goldman Sachs, Citi among 10 brokers with 'Sell' calls; what Nomura, others say -
Goldman Sachs has a target price of Rs 17 for YES Bank, while Citi sees the stock falling to Rs 16.50. Kotak Institutional Equities and Nuvama Institutional Equities have even lower targets of Rs 16.