Sugar stocks traded higher in Friday's session, with several sugar mills and related companies witnessing strong gains on September 25, even though the overall market semtiment remained muted.
Mawana Sugars, KM Sugar Mills, Avadh Sugar & Energy, Uttam Sugar Mills, Dalmia Bharat Sugar, Shree Renuka Sugars, Balrampur Chini Mills and Dhampur Sugar Mills, among others surged up to 13%.
Th erally in sugar stocks came despite a subdued momentum in the broader Indian stock market. The Sensex rose over 100 points, while the Nifty 50 gained 0.11% to trade above 23,050 level.
K.M. Sugar Mills, Avadh Sugar, Mawana Sugars are Leading the Rally
K.M. Sugar Mills shares jumped over 13% to Rs 32.99 apiece on the BSE. Mawana Sugars stock price jumped over 11% to Rs 145.45 apiece on NSE.
Avadh Sugar & Energy shares also climbed 8% to Rs 782 apiece. The stock opened at Rs 724.10 while it closed at Rs 724.10 in the previous session.
Uttam Sugar Mills shares are also witnessing strong buying interest. The stock rose 6% till now to Rs 275.1 apiece on NSE, against its previous close at Rs 260.
Shree Renuka Sugars shares gained around 2.2% and are currently at Rs 23.41. The stock opened at Rs 22.92 on Friday, which was also the price at which it closed in the previous session.
Dalmia Bharat Sugar and Industries shares are up 2% at Rs 407.45 against its previous close at Rs 399.5 apiece on NSE.
Company-Specific Trigger For Balarampur Chini Mills
Like other sugar stocks, Balrampur Chini Mills shares rallied over 4%. The stock has a specific trigger apart from the overall sectoral rally.
On Thursday, Sept. 24, Balarampur Chini announced that it has received a Rs 75 crore grant from the Biotechnology Industry Research Assistance Council under the Department of Biotechnology's BioE3 initiative. The grant is for setting up a 100-tonne-per-year Poly Lactic Acid, or PLA, co-polymer research and development facility at the company's Kumbhi complex in Uttar Pradesh.
The company is also setting up India's first integrated commercial PLA manufacturing facility at the same location. The new research facility can help develop new PLA products, test them, and prepare them for commercial production, as stated by the company.
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