Stocks That Have Increased In Share Price Owing To Surge In Price Of Commodities

1. Sugar stocks:

Dhampur Sugar Mills has hit a 52-week high price of Rs. 271 per share on the NSE. This is a 19.5% surge in comparison to the scrip's previous close of Rs. 226.65. Similarly other sugar stocks in today's trade such as Dwarikesh Sugar, Uttam Sugar Mills among others rallied between 15-20%. In the quarter ended March of FY21 the company reported total income of Rs. 1078 crore as against Rs. 1110 crore in the December quarter. The company's net profit also rose to Rs, 91.44 crore during the period under review.

Domestic sugar prices have increased 7-8 per cent in last one month mainly due to high summer demand & crushing season getting over with no surprises on sugar production front. Analysts at ICICI Securities believe domestic sugar prices would remain above Rs 34/kg given aggressive exports & diversion of sugarcane towards ethanol production.

2. Tata Steel:

The scrip of Tata Steel in a year's time from a closing price of Rs. 273.6 as on May 4 has scaled to currently Rs. 1043.95. This is a substantial hike of 280 percent and has been triggered by the rise in steel price during the time, which pushed FPIs to increase their exposure in the scrip. As per moneycontrol website, FII/FPI have increased holdings from 16.87% to 18.56% in Mar 2021 qtr.

The sector is riding the commodity cycle; steel prices started increasing from July 2020 after India entered the unlocking phase, largely on the back of a recovery in domestic demand and surge in international prices. The major part of the surge in steel prices, however happened post-October with prices touching an all-time high in January. The rally in domestic prices was softer post-January 2021 led by pressure from end-users.

3. SAIL:

This stock has again hit a new 52-week high price today of Rs. 125.65. From a price of Rs. 29.6 on May 4, 2020, the stock has shown a good jump of 324 percent in a span of just 1 year. Here again a steep rise in steel prices which led to FII buying into the stock is factor pushing the stock higher. FII and institutional players both have upper their stake in the counter in the March ended quarter to 4.32 percent and 21 percent, respectively.

4 Cement stocks:

Cement stocks of late were also on a high as the sector witnessed strong demand together with pricing power. Cement price was hiked in March with prices ranging from Rs 5-35 per 50-kg bag. As a result, the all-India average retail price surged Rs 16 per bag month-on-month (MoM) to Rs 363, the second-best in FY21. Most of the cement stocks scaled to their fresh 52-week highs in April 21 such as JK Cement, Dalmia Bharat, Ramco Cements, Shree Cement among others.

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JSW Steel

The stock of JSW Steel hit its 52-week high price on the NSE on April 30, 2021 of Rs. 740 and last closed at Rs. 723.25 per share. As per an Economic Times report, the company increased rates by Rs. 4000 to Rs. 4500 per tonne for April deliver. This is the first price rise in FY22 but an expected one as prices in global markets have surged on demand pipping supply.

 

 

 

 

 

Rain Industries

This is another cement sector company whose share price on May 4, 2021 hit a new 52-week high of Rs. 192.5 per share. There has been reported an hike in cement price to Rs 420 a bag from Rs 280.