Balrampur Chini, Dwarikesh Sugar hit 52-week high; other sugar stocks surge up to 16%—Here is why

Sugar socks were on a roll on Tuesday amid good show by domestic equity markets and robust outlook for sugar mills by brokerage houses. Many brokerages are expecting improved numbers for sugar companies in the December quarter.   

Balrampur Chini surged nearly 12 per cent to hit 52-week high of Rs 416.95 after hitting upper circuit at Rs 411.55 per share on the BSE.    

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At 2.30 pm, shares of Balrampur chini were trading at Rs 416.10, a gain of Rs 41.95 or 11.21% on Tuesday. Similarly, Dhampur Sugar Mills surged 12.16% or Rs 37.35 to 344.60, Mawana Sugars touched 10% upper cicruit to Rs 87.90, Triveni Engineering & Industries Limited gained nearly 12 per cent to Rs 248.25 per share, Dwarikesh Sugar surged nearly 16 per cent to trade on 52-week high value of Rs 85.50 per share and Ugar Sugar works Ltd too was locked in 10 per cent upper circuit to Rs 33.25 per share.    

The surge comes amid upbeat mood in the market and improved outlook for sugar space. As per Crisil, Sugar prices are expected to rise 16-17 per cent this season. It said sugar mills are expected to improvement in both revenue and profitability in the 2022 season (October 2021 to September 2022).   

Meanwhile, the market has been surging despite India’s unemployment rate rose to a four-month high of 7.91% in December, as per Centre for Monitoring Indian Economy (CMIE) data. Besides, spike in Covid variant Omicron cases have also failed to deter the market. The Sensex and Nifty were trading with nearly 1 per cent gain around 2.50 pm on Tuesday.    

Earlier on December 29, news agency PTI quoting sources had reported that a presentation each on natural farming, utilisation of cow dung, ethanol blending and nano fertiliser is expected to be made by Union ministers Tomar, Giriraj Singh, Puri and Mansukh Mandaviya respectively.