Sugar stocks turn sweet on hopes of favourable policies in UP

Shares of sugar companies with large operations in Uttar Pradesh today gained value on expectations for a favourable policy regime in the state, where Samajwadi Party is set to form a new government.

Shares of Bajaj Hindusthan settled for the day 1.80% higher at Rs 34, while Dhampur Sugar Mills rose by 0.50% to Rs 40.15.

Oudh Sugar ended the day 0.38% higher and Balrampur Chini Mills shot up by 3.30%.

Analysts said that sugar stocks gained as the SP government in the past had been known as good for the sector.

Sugar cane prices have risen over the recent past, hitting industry margins during the tenure of BSP.

However, Dwarikesh Sugar and Triveni Engineering saw profit booking and fell by 0.84% 2.20%, respectively.

The Mulayam Singh Yadav-led party captured 224 seats in the 403-member House.

In the broader market, it was a highly volatile trading session and the benchmark Sensex ended 27.77 points lower at 17,145.52.