Market Talk India Suger Stocks Down on fitures trading Ban

India sugar stocks down, underperforming broad markets,
after federal government suspends futures trading until December 31. "There will
be no new positions and only squaring off of old contracts will be allowed,"
Rajeev Agarwal, member of Forward Markets Commission, says. "The government's
move will cool off sugar stocks by arresting the rise in domestic sugar prices,"
says Deven Choksey, MD of K R Choksey. Adds, stopping speculation in sugar
futures a positive move; though recent rally in sugar stocks to be halted, there
could be some medium term upside as sugar companies likely to report better 1Q,
2Q earnings. Says, standalone companies likely more affected vs companies with
diversified revenue streams like power generation, alcohol production. Shree
Renuka Sugars (532670.BY) down 1.6% at INR123.20, Bajaj Hindusthan (500032.BY)
down 3.3% at INR133.60, Balrampur Chini (500038.BY) down 3.1% at INR82.65.