Shares of manufacturers continued to trade higher on the bourses in otherwise weak market.



Bannari Amman Sugars, Dalmia Bharat and Industries, Dwarikesh Industries, Oudh Sugar Mills and Riga Sugar Company have touched their respective 52-week highs on the BSE in intra-day trade today. At 11:15 AM, the S&P BSE Sensex was down 0.54% at 24,670.



In past two-weeks, most of the sugar stocks have rallied more than 20% as compared to 7% rise in the benchmark index. Since February 29, the market value of Dawrikesh Sugar Industries, Oudh Sugar Mills, Dalmia Bharat Sugar and Industries and Rajshree Sugars zoomed more than 50% each.The rally comes on the back of expectations of lower domestic sugar output in SY16 owing to drought conditions in major producing states, together with mandatory exports notified by the Government of India that have led to an uptrend in domestic sugar prices.

"India has exported 29.95 lakh tonnes (LT) of sugar during the first ten months of the current fiscal that is valued at $194 million. It is 56% higher than 19.55 LT exported in the whole of FY2015 fiscal (valued at $103.93 million)," points out G. Chokkalingam, founder & managing director, Equinomics Research & Advisory.



Also Read: Sugar: Tide turning in favour

"On the other hand, sugar output of India, the world's second-largest producer and biggest consumer, is estimated to decline to 26 MT in 2015-16 marketing year as against 28.3 MT in the previous year due to deficit rains. We firmly believe that a still significant upside is left in the sugar stocks like KCP Sugar and Andhra Sugar," he adds.



ICRA upgrade

Name 29/02/2016 14/03/2016 LTP % chg* % chg1# Dwarikesh Sugar 102.10 189.90 208.80 104.51 9.95 Dalmia Bharat Sugar 60.80 96.65 105.10 72.86 8.74 Oudh Sugar Mills 37.30 54.30 63.50 70.24 16.94 Rajshree Sugars 23.00 33.50 36.85 60.22 10.00 Upper Ganges 57.00 75.85 84.50 48.25 11.40 Uttam Sugagr Mills 21.20 27.30 30.20 42.45 10.62 Dhampur Sugar 56.00 74.35 79.15 41.34 6.46 Sakthi Sugars 23.40 30.50 32.50 38.89 6.56 KCP Sugar &Inds. 19.40 24.90 26.00 34.02 4.42 Ponni Sugar Erode 164.10 223.50 216.70 32.05 -3.04 Mawana Sugars 18.00 22.20 23.30 29.44 4.95 Rana Sugars 3.85 4.63 4.85 25.97 4.75 Triveni Engg 39.05 48.05 48.70 24.71 1.35 Shree Renuka 11.65 13.84 14.51 24.55 4.84 DCM Shriram Inds 85.00 99.75 105.00 23.53 5.26 Bannari Amm.Sug. 1055.00 1213.75 1290.00 22.27 6.28 Balrampur Chini 81.00 95.45 97.50 20.37 2.15 Bajaj Hindusthan 14.75 16.73 17.45 18.31 4.30 Ugar Sugar Works 12.61 14.29 14.89 18.08 4.20 EID Parry 168.55 190.20 198.10 17.53 4.15 LTP : Last traded price on BSE in Rs at 11:15 *% change over 29/2/2016 #% change over 14/3/2016