In the final minutes of trading on April 9, a flurry of activity gripped sugar stocks, spurred by reports from Bloomberg hinting at potential government measures to increase the diversion of sugar for ethanol production in India.
Among the sugar stocks that experienced notable upward movement, Balrampur Chini Mills surged to Rs 393, marking a 2 percent increase from its previous closing price. Similarly, Shree Renuka Sugars and Dhampur Sugar Mills saw significant gains, climbing 7 percent and 3 percent, respectively.
This sudden surge in sugar stocks reflects the market’s response to the possibility of increased ethanol production, as ethanol is increasingly being seen as a crucial component of India’s renewable energy strategy. If the government indeed implements measures to divert more sugar for ethanol production, it could potentially boost the prospects of these sugar companies in the long term. Investors and analysts will likely keep a close watch on any further developments regarding government policies related to ethanol production and its impact on the sugar industry.
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