Sugar Stocks Rally Upto 10% : Should Investors Book Profits Amid E10, Ethanol Supply Concerns?

Sugar stocks have surged sharply, with some counters gaining around 8–13% amid optimism over higher ethanol blending and rising sugar prices. Ambareesh Baliga, Market Analyst, believes investors should consider using the recent rally to book profits rather than chase the stocks. He points to concerns around excess ethanol supply and large investments in dedicated ethanol plants. A potential return to E10 could also create logistical and demand-related challenges for the ethanol industry. With the festive season approaching, government measures could also limit a sharp rise in sugar prices. Overall, the outlook for major sugar companies remains cautious despite the recent stock rally