New Delhi: The sugar sector is on a roll. The sector has gained 8.66 per cent in the last two trading sessions. Analysts give reasons for this rise and their picks in the sector.
While Triveni Engineering has gained 39 per cent, Bajaj Hindustan rose 15 per cent, Dharani Sugars jumped 14.88 per cent and Riga Sugar and JK Sugars added a little over 10 per cent in the last two trading sessions. Other noteworthy winners include Dhampur Sugar, Upper Ganges Sugar, Balrampur Chini, Shree Renuka, Ponni Sugars(E) and Oudh Sugar Mill.
Factors like high prices in international markets, diversion of sugar cane for production of Ethanol, and increased demand from the Chinese market leading to a demand-supply mismatch is helping the sector. The Sensex hitting lifetime highs is providing the momentum as well, feel analysts.
The entire sugar sector is likely to do well for the next 18 months. Though all the stocks in this sector will perform better, Bajaj Hindustan, Balrampur Chini, Upper Ganges and JK Sugar are my best picks. These stocks can give 40-50 per cent returns in the next 18 months.
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