Mumbai: When investors in stocks across the breadth of the market were running for cover amid a plunge of over 600 points on Monday, sugar scrips were seeing buyers rushing in anticipation for sweeter pastures.
While the Bombay Stock Exchange’s (BSE) benchmark Sensex plunged deep into the red by over 616 points, or close to 5%, shares of a number of sugar companies recorded gains of as high as 8%.
Nearly all the sugar stocks managed to close with gains with companies such as Bajaj Hindusthan, Balrampur Chini, Dhampur Sugar, Dwarikesh Sugar, Oudh Sugar Mills, Rajshree Sugar, Simbhaoli Sugar, Uttam Sugar and Thiru Arooran Sugars adding between 2% and 8% to their share prices.
Dhampur Specialty, Andhra Sugar and Dharani Sugar were among the few sugar stocks that ended in the red.
Bajaj Hindusthan added 5% to Rs28.35, Dhampur Sugar rose 2.56% to Rs76.20, Dwarikesh Sugar appreciated 5.84% to Rs78.85 and Mawana Sugar jumped 6.7% to Rs39.75.
Brokers said sugar counters were clearly favourites in Monday’s battered market on expectations that the government plans to build a buffer stock of the commodity and extend subsidy to exporters. These measures would stem any possible fall in prices.