Shares of sugar companies with large operations in Uttar Pradesh surged in the morning trade on the bourses on Tuesday, as investors tracked state election results.
Bajaj Hindusthan and Dhampur Sugar Mills rose by 0.55 per cent and 1.31 per cent, respectively on the BSE.
Dwarikesh Sugar also made gains and was up 0.91 per cent, while Triveni Engineering moved up 0.52 per cent.
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.
Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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