Sugar stocks spiral downwards
Friday’s afternoon session witnessed a drop in most sugar stocks after Thursday’s rally.
The shares of Indian Sucrose plummeted 4.96 per cent, while Thiru Arooran Sugars and Piccadily Sugar & Allied Inds. sank 4.90 per cent and 4.26 per cent, respectively.
Meanwhile, Dharani Sugars & Chemicals declined 4.11 per cent, K. M. Sugar Mills sank 3.44 per cent and Uttam Sugar Mills was down 2.48 per cent.
Although there is no concrete reason for the decline in sugar stocks, it could be on account of the uncertainty revolving around the monsoon and the shortfall in production in the current season as the drought-like conditions in Maharashtra and Karnataka are likely to impact the sugarcane planted last year.
In contrast, some of the sugar stocks that closed in green include EID Parry (up 7.47 per cent), Rajshree Sugars & Chemicals (up 7.17 per cent), Gayatri Sugars (up 4.98 per cent) and Parvati Sweetners (up 4.55 per cent).
On 27th June, 2019, most sugar stocks rallied as much as 3 to 19 per cent as monsoon covered most part of the nation.
On Friday, the BSE Sensex closed at 39,394.64, down 191.77 points or 0.48 per cent.