INSUBCONTINENT EXCLUSIVE:
The last 34 sessions turned to be a disaster for the domestic equity market, as market capitalisation of the BSE-listed firms declined by
nearly Rs 21 lakh crore till October 18.
Smallcaps took a heavy beating, with the BSE Smallcap index falling 17 per cent between August 29
The Sensex and BSE Midcap index retreated 10 per cent and 15 per cent, respectively, during the same period
with returns ranging up to 70 per cent in this period.
Among the top gainers, Dhampur Sugar Mills, Uttam Sugar Mills and Dwarikesh Sugar
Industries have risen 69.77 per cent, 62.35 per cent and 52.99 per cent, respectively, since the end of August
Bajaj Hindusthan, Dalmia Bharat Sugar, Avadh Sugar Energy, Balrampur Chini Mills, Triveni Engineering, DCM Shriram Industries and Shree
Renuka Sugars have gained between 12 per cent and 45 per cent.
Indian sugar stocks have delivered solid return to investors past two months
after the government announced a Rs 5,500 crore package for the sugar industry, including an over two-fold jump in production aid to cane
growers and transport subsidy to mills for exports.
The government has also announced measures ranging from higher price for ethanol
extracted from sugarcane to financial assistance to sugar mills to create ethanol capacity to help the cash-starved mills clear some Rs
13,000 crore dues that they owe to farmers before the 2019 general elections.
The government has also hiked prices of ethanol, triggering a
surge in these shares.
JM Financial said the government continues to provide support to the industry through various measures including
is unlikely to break the cyclicality of the sugar sector, given its limited impact on sugar production
2018-19 season, despite weak international prices
falling rupee and a spike in US bond yields have mainly dented market sentiments on Dalal Street in the recent past
ability to strengthen its integrated business model
Cable (up 56 per cent), Praj Industries (up 27 per cent), Den Network (up 49 per cent), GTPL Hathway (up 29 per cent), Bombay Rayon (up 28
per cent) and Gujarat Ambuja Exports (up 10 per cent)
With up to 78 per cent drop, Infibeam Avenues, Ashapura Intimates Fashion, Adlabs Entertainment, 8K Miles, Kwality and Bombay Dyeing have
been top wealth destroyers in the smallcap space.
