Sugar stocks dip amidst market uptick
Sugar shares had a mixed run on Wednesday: Rajshree Sugars & Chemicals led with a 1.83% gain, while Avadh Sugar & Energy slipped over 2%.
The overall stock market also finished up, with both the Nifty50 and Sensex posting small gains.
India's sugar output to rise next season
India's sugar output is set to jump nearly 15% next season thanks to good monsoons and better cane yields, especially in Maharashtra and Karnataka.
This could lift sugar companies' revenues by around 6-8%, but profits may not grow much if ethanol prices don't move.
Key things to watch for in sugar space
Government pushes for ethanol blending and exports are making sugar firms—especially those big on ethanol—more appealing to investors.
Still, oversupply worries linger, so it's smart to watch crop yields, ethanol prices, and policy updates if you're thinking about investing in this space.