Sugar stocks like Bajaj Hindusthan, Dhampur Sugar reverse early gains; settle with losses

MUMBAI: Shares of sugar companies with large operations in Uttar Pradesh reversed their initial gains and settled with losses in a highly volatile market today.

As Samajwadi Party emerged set to capture power in Uttar Pradesh, routing the ruling party BSP, the sugar stocks gained ground in early morning trade, as the SP government in the past had been known as good for the sector.

However, the stocks could not sustain their initial gains amid an overall stock market downtrend later in the day.

Leading sugar producer Bajaj Hindusthan settled for the day 7.86 per cent lower at Rs 33.40, while Dhampur Sugar Mills dropped by 6.42 per cent to Rs 39.35 on the BSE.

Shares of Dwarikesh Sugar closed 5.68 per cent lower and Triveni Engineering lost 4.46 per cent, while Oudh Sugar shed 6.60 per cent.

"Fall in sugar stocks were largely due to profit- booking," CNI Research CMD Kishore Ostwal said.

"The political drama casted its effect on the bourses as well as market traded in a highly volatile fashion during the day," Bonanza Portfolio Research Analyst Shanu Goel said.

Mulayam Singh-led SP rode on an anti-incumbency wave to dislodge Mayawati-led BSP looking to win a clear majority on its own.

In the broader market, the BSE barometer Sensex ended 189.58 points lower at 17,173.29.