Sugar Stocks: Uttam Sugar, Avadh Sugar, Bajaj Hindusthan Sugar, Triveni Engineering hit new 52-week high; here's why

livemint.com:

₹25 per quintal is anticipated for SAP for the 2023–2024 season. Uttam Sugar Mills (up over 6%), Ugar Sugar Works (up over 4%), Mawana Sugars (up over 3%), K M Sugars Mills (up over 6%), Dalmia Bharat Sugar & Industries (up nearly 7%), Sakthi Sugars (up nearly 5%), Avadh Sugar & Energy (up over 8%), Balrampur Chini Mills (up over 2%), Bajaj Hindusthan Sugar (up nearly 14%), Triveni Engineering & Industries (up over 6%) were all trading in the green zone. Uttam Sugar Mills share price, Avadh Sugar & Energy share price, Bajaj Hindusthan Sugar share price, Triveni Engineering & Industries share price touched new 52-week high in today's session.

Further, analysts believe rising crude oil prices and the weakening rupee are other factors contributing to the increase in sugar stock prices. Government officials consider other energy sources that can partially replace crude whenever its price rises. Oil marketing companies will have to pay more to import oil as a result of the falling rupee and rising crude oil prices.

Moreover by 2025, the government hopes to meet its 20% ethanol blend target. In such a scenario such stocks would benefit. Oil prices have risen at their highest levels since November 2022.

Brent oil is trading above $88 per barrel and WTI crude oil is trading above 8$5 per barrel. For the month of August, rupee depreciated 0.66%. The expectation that supply reductions by OPEC leaders will tighten the market caused crude oil prices to rise to their highest level since November, according to reports.