Ahead of the Uttar Pradesh assembly election results tomorrow,the shares of many sugar companies with significant exposure to the state rallied sharply today.
The sugar stocks also gained ground on the back of the Union Agriculture Minister Sharad Pawar’s statement today that there is scope for further exports of one million tonnes of sugar,as the country has surplus stock.
Bajaj Hindusthan and Dhampur Sugar Mills were among the major gainers and rallied by up to 8 per cent in the intra-day trade,but pared some of their gains later in the day in a weak market.
Bajaj Hindusthan shares settled for the day 2.98 per cent higher at Rs 36.25,while Dhampur Sugar ended with a gain of 1.57 per cent on the BSE.
Dwarikesh Sugar shares also rose 3.87 per cent,Triveni Engineering gained 2.14 per cent,Oudh Sugar Mills was up 7.88 per cent.
While the results are expected tomorrow,the exit polls have suggested Samajwadi Party doing better than others.
Market experts said that the sugar industry expects a favourable policy regime if Samajwadi Party comes to power.
Counting of votes for the elections would begin tomorrow morning and the results are expected later in the day.
In the last assembly election,the ruling part BSP had won 206 seats and got a majority on its own surprising political pundits. SP had got 97 seats,BJP 50 and RLD,which contested in alliance with BJP won 10 seats. Independents and others had got 17 seats.