DJ MARKET TALK: India Sugar Stocks Rise On Short-Covering
Published: 03/03/2010, 4:40:02 AM
DJ MARKET TALK: India Sugar Stocks Rise On Short-Covering 0435 GMT [Dow Jones] India sugar stocks up, outperforming broader market, on short-covering, Centrum Broking analyst says. "It's just a technical bounce back because the stocks have fallen very sharply in the past few days." But says there's no fundamental reason to support the gains. Adds sugar prices set to fall going ahead. "We are heading into a negative cycle and we are advising clients to exit the sector." Another analyst says: "Going ahead, production should return to normal levels helped by higher cane plantings. Though we don't expect prices to fall immediately, we expect pricing pressure to ease with a rebound in production." Shree Renuka Sugars (532670.BY) +3.7% at INR161.80, Bajaj Hindustan (500032.BY) +4.3% at INR157, Balrampur Chini Mills (500038.BY) +3.6% at INR107.20, Sakthi Sugars (507315.BY) +3.7% at INR68.10, Dhampur Sugar Mills (500119.BY) +3.2% at INR94.50. Stocks have fallen 15%-20% in past one month. Sensex +0.7%. (AMR) Contact us in Singapore. 65 64154 140; MarketTalk@dowjones.com (END) Dow Jones Newswires 03-02-10 2335ET Copyright (c) 2010 Dow Jones & Company, Inc. DJ info: 5064,55106 N/DJCS,N/DJOS,N/OSAG,N/OSCM,N/OSTR,N/ALMT,N/ASMT,N/CMD,N/CNW,N/DJMT,N/DJWI,N/IN T,N/SCD,N/SGR,N/STK,N/WEI FSN43953 ACTV FINANCIAL FOOD GENERAL STOCKS SUGAR 2010-03-03 04:35:08 UTC ^^^^^^