buy at 135 -140, will not go below 133, sell at 155 , superb trading stock. easy 10 % available for takers. movement of sugar stocks is reasonably independent to market.
Considering the UP govt`s decision to temporarily stop import of raw sugar and the statements of Sharad Pawar ...how would these effect the stock over the day or so (+ive or -ive)...
Please understand U.P. govt has no power to ban import.It has only banned temperarily to bring raw sugar from ports to U.P. It is political game. Finally all such mad decisions create more shortage benefitting mills not farmers.U.P.hasnot banned refining of raw already lying with mills.
There is still ambiguity on the policy announced by the Govt. I think it says that the FRP will be applicable only to levy sugar quota. For the balance it will br the price advised by the State Govt. Earlier it was felt that the State Govt will bear the burden of the difference to be paid to the farmer. Now I think they have clarified that this will be borne by the sugar millers as the Central govt feels that they are earning huge profits.
These political stunts do play a part in dictating the movement of sugar manufacturing companies. And remember that the Congress is trying to woo the UP electorate in a big way so that they can increase their seats in Lok Sabha in the long run.
If at all there is further rise in sugar company shares it is only because of the high prices of sugar in international and therefore in local markets due to a situation of falling production and dwindling stocks of sugar.
| NIFTY 
