Following the 48th GST Council meeting's reduction of the goods and services tax (GST) on sugar from 18% to 5% and the central government's goal to double ethanol blending from the current 10% to around 18% to 20% by the end of 2023 have suddenly made sugar stocks more enticing to Dalal Street bulls. Since the stock market opened today, substantial buying interest has been shown in sugar stocks such as Dalmia Bharat Sugar, Dhampur Sugar, Bajaj Hindusthan Sugar, Shree Renuka Sugars, Dwarkesh Sugar, etc. The share price of Dalmia Bharat Sugar rose when it began trading today, reaching an intraday high of 440.90 rupees per share on the NSE and posting a gain of about 20%. In fact, early Monday morning trades included the sugar stock in its higher circuit. Within a few minutes of the opening bell today, the share price of Dhampur Sugar rose to its day's high of 275 rupees, increasing by 17%. Another sugar stock that today touched the upper circuit was Bajaj Hindusthan Sugar Ltd. The share price of Bajaj Hindusthan Sugar today began with an upward gap and continued on to lock in a 10% upper circuit. The share price of Shree Renuka Sugars also started out positively before reaching an intraday high of 65.60 on the NSE, which is only about three cents behind its 52-week high of 68.75.

Key Point

• Following the 48th GST Council meeting's reduction of the goods and services tax (GST) on sugar from 18% to 5% and the central government's goal to double ethanol blending from the current 10% to around 18% to 20% by the end of 2023 have suddenly made sugar stocks more enticing to Dalal Street bulls.

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