Dwarikesh Sugar Industries, Dalmia Bharat Sugar and Industries, Triveni Engineering & Industries, Balrampur Chini Mills, Avadh Sugar & Energy and Uttam Sugar share prices were down up to 10 per cent on BSE in intraday trade, after the government on Tuesday imposed restrictions on sugar exports from 1 June 2022. “Further, most sugar stocks have already corrected by over 30%-40% over the past couple of months, hence long-term Investors are advised to hold their positions, as this appears to be a short-term government measure to reign in prices,” Aamar Deo Singh, Head Advisory, Angel One, told .com.
Dwarikesh Sugar Industries share price tanked 10 per cent to Rs 99, Dalmia Bharat Sugar and Industries lost 8 per cent to Rs 372.45 spiece, Avadh Sugar & Energy declined 8 per cent to Rs 575.45 apiece. Dhampur Sugar Mills share price hit 5 per cent lower circuit to Rs 244.35, while it touched a fresh 52-week low on NSE at Rs 239.65 apiece. Balrampur Chini Mills plunged 9.3 per cent to Rs 352.60 apiece. In comparison, S&P BSE Sensex was down 0.43 per cent.
According to the Ministry of Commerce and Industry, sugar exports have been placed under ‘restricted’ category with effect from 1 June 2022, limiting sugar exports to 10 million tonnes till the end of the season on 31 October 2022. “A consistently higher inflationary environment has created a sense of panic amongst traders and with reports of export restrictions on sugar has led to a sharp fall in sugar stocks,” AR Ramachandran, Co-founder & Trainer, Tips2Trades, told .com. He added that technically, majority sugar stocks look a little oversold. “Avadh sugar can be bought on a further dip near 555-560. Till Balrampur Chini doesn’t close above 365, the trend could be bearish in the coming days as well,” he said.
Zomato share price rallies 18%, mcap tops Rs 50,000-cr; Here’s what’s fueling the rally. buy, sell, hold?
US stocks in red amid slow growth, high inflation; Nasdaq falls over 2.8%
BPCL, Indian Hotels Company, Future Retail, Coal India, Grasim stocks in focus
Bharti Airtel operating earnings may grow at 18% over next two years, shares may rally 30%; should you buy?
The government said sugar mills and traders who have specific permissions from the government will only be able to export sugar (including raw, refined and white sugar) till 31 October 2022 or until further orders. Additionally, the restriction is not applicable for exports to the European Union (EU) and the United States under CXL and TRQ (Tariff-Rate Quota) quota.
The stock recommendations in this story are by the respective research analysts and brokerage firms. TheSpuzz Online does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.