Expect sugar stocks to rally in coming months: Ambareesh Baliga

In an interview with ET Now, Ambareesh Baliga, Managing Partner-Global Wealth Management, Edelweiss Financial Services, gives his views on sugar stocks.

ET Now: There is a sparkling, sweet rally in sugar, how much upside do you think it could have because the demands that the sugar mills in the UP have made which is an amendment to the law itself and linking it to the cane prices like the southern mills do requires a lot of change and the farmer lobby may be too strong as vote bank for the state government to give into, what do you think will happen?

Ambareesh Baliga: I do not see any change happening as of now at least till the elections are over because being politically sensitive I do not think they can really take a clear stand on that for the time being. I think status quo could be actually be maintained but then this could be positive for the southern sugar mills and clearly we have seen some sort of a rally there, look at Renuka Sugar the way it has moved up today and especially with the other food prices going up, sugar could be the next one where you could see some sort of a rally in the commodity prices. So, after a lull for the last two years when we had a clear down cycle it is possible that we could see the cycle turning now.