Stock market today: Why industrial alcohol stocks are skyrocketing today — explained

livemint.com:

Stock market today: Industrial alcohol maker company's shares have been in uptrend since early morning deals. Praj Industries share price added around one per cent during morning session whereas Global Spirits shares surged over 7 per cent. BCL Industires share price also witnessed heavy buying during morning deals and added over 5 per cent within few minutes of stock market's opening bell.

According to stock market experts, these industrial alcohol maker stocks are surging today because of the new announcement by the Government of India (GoI) in regard to ethanol blending price. On Wednesday last week, Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi approved hike in the cost of ethanol procured by the public sector oil marketing companies (OMCs) from distilleries. This is going to benefit industrial alcohol maker companies in India.

Market experts said that Dalal Street is discounting on the benefit these companies are expected to benefit and advised investors to add Praj Industries and Global Spirits stocks in their portfolio as there are limited companies on Dalal Street that deals in industrial alcohol. On why industrial alcohol maker companies are skyrocketing today, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "The Cabinet Committee on Economic Affairs has given its approvalfor a hike in the cost of ethanol procured by the public sector oil marketing companies (OMCs) from distilleries. After this nod, price of ethanol from C-heavy molasses have gone up from ₹46.66 to ₹49.41 per litre.