InvestorQ : Why did sugar stocks rally so sharply in the last few weeks and do you see it continuing in the case of Balrampur, EID Parry and Triveni Engineering?
Dawn Cherian made post

Why did sugar stocks rally so sharply in the last few weeks and do you see it continuing in the case of Balrampur, EID Parry and Triveni Engineering?

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Mitali Bhutta answered.
2 weeks ago
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There has bene a sugar stock rally happening for some time now but now stocks are hitting historic high levels. For example, on Tuesday, Balrampur, EID Parry and Triveni hit all-time highs on the BSE. In fact, Triveni Engineering which makes sugar machinery, had scaled Rs.196 last touched in the peak of the bull rally of 2007. Both Balrampur and EID Parry have already surpassed their life-time highs scaled in May 2021.

Many other sugar stocks like Renuka Sugars, Magadh Sugar, Dwarikesh, Dhampur Mills and Dalmia Bharat also joined the party and are quoting at very close to all time high levels. The trigger was the Ethanol Blending deadline. Clearly, it looks like the sugar stocks are flattered by the announcement of Mr. Modi to advance 20% ethanol blending to year 2023. That is exactly 7 years ahead of the original target of achieving this by 2030.

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