Sugar Stocks are rallying on the expectations of the higher Ethanol blending push

Sugar stocks are looking very good and are in the process of breaking out. Could be due to the fact that we are looking at higher ethanol blending in the near future as the crude oil rise will force the goverment to make the adoption push a little more aggressive.

The 1 month performance of several of the sugar stocks are below in the charts and this will give us some idea of how this segment is doing well compared to the rest of the market

which is seeing a lot of selling.

UTTAM SUGAR

Dalmia Bharat

Mawana Sugar

Shree Reuka Sugar

Nifty

Overall it is worth looking at these stocks once they correct it a little bit. There is a good chance that some of these become the leaders when the markets start rallying again.