Market movers: Why did Balrampur Chini Mills suddenly turn bitter for investors?

NEW DELHI: Balrampur Chini Mills, which has been among the favourite sugar stocks for investors, snapped its four-day winning run and ended down nearly 7 per cent on Tuesday after it was put under F&O ban.

National Stock Exchange on Monday put the company in the list of securities banned from trading in the futures and options (F&O) segment after it crossed 95 per cent of the market-wide position limit.

The counter had surged about 16 per cent in the previous four sessions thanks to positive management commentary and bullish market sentiment. The company is banking on Indian sugar exports to hit all time high levels.

Balrampur Chini Mills plans to ship 7.5 million tonnes of sugar this year. Moreover, the company will also benefit from higher ethanol blending in fuel after crude oil prices have been training at more than $100 per barrel.

Bandhan to benefit


Bandhan Bank was in the spotlight on Tuesday after the Reserve Bank of India issued master directions on Monday, instructing all microfinance lenders to set up a board-approved policy for pricing of loans. This removes the pricing caps for microfinance loans, which is positive for micro finance lenders, said analysts.

Analysts believe this move will benefit Bandhan Bank, along with names like Satin Credit, CreditAccess Grameen and Spandana Sphoorty.

Shares of Bandhan Bank ended the day with over 6 per cent gains.

Autos buck trend


Shares of the auto sector bucked the market-wide trend and managed to eke out gains after reports suggested as many as 75 companies have managed to get sops unde te PLI scheme.

Maruti Suzuki, Hero MotoCorp, Bosch, Lucas-TVS, Mitsubishi Electric, Motherson Sumi, Tata Autocomp, and Toyota Kirloskar are among those 75 companies that have secured an approval under the Production Linked Incentive (PLI) scheme.

The scheme has been successful in attracting proposed investment of Rs 74,850 crore against the target estimate of investment of Rs 42,500 crore over a period of five years, a senior government official said.

Nifty Auto ended up 0.57 per cent, led by gains in M&M, Ashok Leyland, Maruti Suzuki and TVS Motor.

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