Sugar stocks jump up to 8% as Modi government takes this decision on ethanol-blending programme - Check top buzzing shares
As the government advanced 20 per cent ethanol blending by 2 years to 2023 from 2025, the shares of sugar companies rallied up to 8 per cent on the BSE in intra-day trade on Thursday.
As the government advanced 20 per cent ethanol blending by 2 years to 2023 from 2025, the shares of sugar companies rallied up to 8 per cent on the BSE in intra-day trade on Thursday.
The shares of Balrampur Chini Mills rallied most than its peers by around eight per cent to Rs 325.85 on the BSE in intraday today as against 0.62 per cent rise in the S&P BSE Sensex at 09:27 am.
Triveni Engineering & Industries, and Dwarikesh Sugar’s shares rallied by six per cent each at Rs 157.5 and 59.25 per share on Thursday, whereas, Dhampur Sugar grew by around five and a half per cent to Rs 335.5 per share and Avadh Sugars jumped near five per cent to 321.25 apiece today.
EID Parry (India) gained around three per cent to 427.9 per cent on the BSE intraday today.
According to the Oil Ministry gazette notification, “The Central Government hereby directs that the oil companies shall sell ethanol-blended petrol with a percentage of ethanol up to 20 per cent as per the Bureau of Indian Standards specifications, in the whole of the States and union territories.”
The government has preponed the programme to 2023 from 2025. The oil ministry also said. "This Notification shall come into force with effect from the 1st April 2023". India is the world's third-biggest oil importer with around 85 per cent oil imports, this move will reduce the import burden of the country.
Besides, the other trigger for sugar stocks to surge is lower production in Brazil, which is one of the largest sugar producer globally. The international sugar prices have been rising due to less supply and it opens up space for the sugar companies in India.
The majority of brokerage firms have positive stance on India’s sugar industry as it is well poised to benefit from global and domestic factors. Along with Brazil, Thailand and the EU would keep supplies tight and global prices firm, enabling India to increase exports.
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02:17 PM IST