Sugar Sector saw Buying after Strong Correction

Sugar sector remained strong throughout the day as most of the sugar companies gave a robust movement and closed in the greener zone of the market.

The price of Sugar is likely to maintain itself though government has imposes stock limits on the millers due to the lower output, as observed by the experts and analysts of the market.

Sugar production is likely to fall to 23.3 million tonnes in the ensuing season, down from 25.2 million tonnes last season, in the second largest sugarcane producer of the world after Brazil. With around 22 per cent of the global sugar production Brazil is at the top of the global list, while India contributes over 14 per cent as the second largest producer of sugar. The Country is the largest consumer of the sweetener.

The supply constraint which is anticipated to arise shortly and festive seasons may lead to a surge in demand. This in turn could lead to upward stabilization of prices, helping both the sugar millers maintain their margins and the sugarcane farmers have better remunerative prices. States like Uttar Pradesh, Maharashtra, Gujarat, Haryana, Punjab, Andhra Pradesh, Tamil Nadu, Karnataka and Bihar are the major sugar producing states in India.

Indian market has seen a sharp rise in the price of sugar over the past five months by at least Re 1 per month as the production in the 2015-16 had declined by 11 per cent to 25.2 million owing to drought conditions in some of the major sugar growing areas in Maharashtra and Karnataka.

Market performance today

KCP Sugar- KCP Sugar share price closed at Rs 32.90 apiece on NSE at the end of today’s trading session, showing a growth of 5.83 per cent. The share price opened at Rs 31.35 from a previous closing of Rs 30.90. The intraday high and the intraday low are Rs 34.30 and Rs 31.00 respectively.

Upper Ganges Sugar- Upper Ganges Sugar share price gave a return of 1.32 per cent in today’s trading session. The share price closed at Rs 407.70. The intraday high and intraday low are Rs 433.80 and Rs 405.00 respectively.

Dhampur Sugar- Dhampur Sugar share price closed up by 3.19 per cent from previous closing. The share price closed at Rs 118.20 apiece on NSE. A total of 16,81,077 shares of the company have exchanged hand s on the counter on NSE.

Dwarikesh Sugar- Dwarikesh Sugar share price closed at Rs 256.15, up by 5.48 per cent. The intraday high and the intraday are Rs 266.95 and Rs 244.10 respectively.

The outlook of the sugar sector was strong in today’s trading session and most of the Companies showed buying after a good correction of almost 20 per cent from recent high. It will be interesting to watch if the shares hold the momentum on Monday.