Through this article, we will let you know about the effect on Sugar Stocks caused due to GST reduction on Ethanol
Subsequent to the announcement of GST reduction on Ethanol, sugar stocks are in back-to-back Upper circuits.
To mus, Ethanol producers will not gain from this move. Ethanol prices are determined by Oil companies+GST. Reduction of GST on Ethanol will benefit buyers and not Ethanol producers.
And Ethanol producers already working at optimum capacity as they get orders in proportion to their capacity
Such a spurt in stock prices of Sugar stocks appears to be misplaced irrational AND Pump & dump. Our advice is to book profit. Not to buy.
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