'Wait to buy sugar stocks'

In a chat with ET Now, Amit Khurana, director research, Daulat Capital, talks about the outlook of sugar stocks.

Are you betting big on the sugar sector now?

I would still wait and watch, considering we have a pretty much surplus in terms of production estimates. It has got to be a long haul. I would probably not jump into it right now. It is a wait and watch. I would look at the efficacy because the statements of intent are all there for quite a long time in India but actual action plan and how does it pan out into the fundamentals of the sector is something that we have to wait and watch for. If it does work out to be the case, then the sector will be in for some good times but we do not know what the reaction of the establishment will be when the market goes into a deficit, which is typical of the sugar sector. Every two years, we have a surplus and then it comes back to deficit. Tactically, these stocks can give you a return, which could be pretty attractive in the near term but structurally keeping my fingers crossed.