Sugar stocks rise as SP leads in UP elections

Mumbai: Shares of sugar companies with large operations in Uttar Pradesh surged in the morning trade on the bourses today, as investors tracked state election results.

Bajaj Hindusthan and Dhampur Sugar Mills rose by 0.55 percent and 1.31 percent, respectively on the BSE. Dwarikesh Sugar also made gains and was up 0.91 percent, while Triveni Engineering moved up 0.52 per cent.

[caption id=“attachment_235781” align=“alignleft” width=“380” caption=“Bajaj Hindusthan and Dhampur Sugar Mills rose by 0.55 percent and 1.31 percent, respectively on the BSE.”] [/caption]

Market experts said that the sugar industry expects a favourable policy regime if Samajwadi Party comes to power. Samajwadi Party is emerging as the single largest party leading in 173 of the total 403 seats in Uttar Pradesh Assembly.

BSP, which had won an absolute majority with 206 seats in the 2007 polls, is leading in 98 seats, whereas BJP and Congress are ahead in 56 seats each.Sugar cane prices have risen over the recent past, hitting industry margins.

Counting is underway for elections results in five states- Uttar Pradesh, Uttarakhand, Punjab, Goa and Manipur.

PTI