Sugar stocks may see some upside movement: CK Narayan

CK Narayan, President Treasury, Sharyans Resources in an interview with ET Now talks about sugar stocks.

Is there a trade in the sugar space?

Yes and no. It is a mixed answer but it is yes because I see global sugar prices trading somewhere near support around 26-27 cents and there should be an upside moment. It is no because it is too politically sensitive and you need to be a government watcher all the time.

You have the set of policy announcement overweight at the moment, so much that unless you have something very specific coming out, sugar stocks do not really sustain the higher levels. So if we do not have any EGoM meeting or anything on the anvil for a while and then the global price of sugar were to move up since it is trading near support, yes, you will have the making of an upside trade but I do not think there is anything sensational in it right now, only Renuka perhaps.