Sensex Opens 400 Points Higher; Oil & Gas And Banking Stocks Lead

Among gold ETFs, Kotak Gold ETF and HDFC Gold ETF are among the top gainers today.

In news from the sugar sector, sugar stocks are in focus today.

India on Thursday cut sugar export subsidies by 31.4% for the current season which ends on 30 September according to a government order issued by the Ministry Of Consumer Affairs, Food And Public Distribution.

Last year, India, the world's biggest sugar producer behind Brazil, approved subsidies of Rs 5,833 per tonne to encourage cash-strapped mills to export 6 m tonnes of sugar in the current 2020/21 season.

The government subsidies for sugar exports now stand at 4,000 rupees a tonne, said the Ministry Of Consumer Affairs, Food And Public Distribution, without giving any reason for its decision.

The above move to give sugar export subsidies of Rs 5,833 a tonne spurred a flurry of overseas export deals. With the help of the subsidies, trade sources said dealers have contracted to export 5.7 m tonnes of sugar in the 2020/21 season.

Reports state that higher sugar exports from India will cut back large inventories at home and prop up domestic prices, which will help India's sugar mills.

Shares of sugar companies have opened on a negative note on the back of the above news.

Shares of Dalmia Bharat Sugar and Sakthi Sugars fell over 3% while E.I.D. Parry and Dwarikesh Sugar are trading down by 2%.

Moving on to news from the energy sector, HPCL is among the top buzzing stocks today.

Hindustan Petroleum Corporation (HPCL) reported a net profit of Rs 106.4 bn on a standalone basis for the fiscal ended 31 March 2021.

This is 304% higher than the profit posted a year ago.

The company attributed the rise in profit to improvement in refinery margins helped by inventory gains and favorable exchange rate variations.

For the fourth quarter ended 31 March 2021, the company posted a net profit of Rs 30.2 bn as against Rs 268 m profit in March 2020.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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