Sugar stocks gain on decontrol hopes

Sugar stocks on Thursday rallied on the bourses on hopes that the government would soon consider a partial decontrol of the sector.

Shares of a host of sugar firms, including Bajaj Hindusthan, Shree Renuka Sugars, Balrampur Chini Mills, Triveni Engineering & Industries and Dhampur Sugar Mills surged up to 13 per cent on the BSE.

Beaten down stocks that may turn hot again

The surge in sugar stocks came on the back of the Food Minister K V Thomas's comments that the government would consider the demands for a partial decontrol of the sector after the Parliament Session.

Speaking on the sidelines of the AGM of Indian Sugar Mills Association, Thomas said on Wednesday that the government would also consider further export of sugar at an "appropriate time".

Surplus trouble for sugar industry

Cheering the news, shares of the country's biggest sugar producer Bajaj Hindusthan saw its stock rising by 7.58 per cent, while Shree Renuka Sugars jumped 5.40 per cent to close at Rs 26.35.

Dwarikesh Sugar Industries skyrocketed 10.03 per cent, Balrampur Chini Mills spurted by 6.20 per cent and Triveni Engineering shares went up by 3.72 per cent.

Further, Dhampur Sugar Mills rose 5.94 per cent, Sakthi Sugars zoomed up by 12.76 per cent and Simbhaoli Sugars gained 1.73 per cent.