Rally in sugar stocks should be used to exit, said SP Tulsian of sptulsian.com.

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Speaking about BHEL, which is surging in trade on the back of a buyback, Tulsian said, "I will not be giving any credence to the hopes of BHEL coming out with a buyback scheme, because that cash has been lying with the company for ages on which they have been incurring annuity, treasury income and showing the bottomline in black."

On the sugar stocks, Tulsian said, “Since the government has extended the release mechanism till December and that will keep the prices firm. If the release mechanism is dismantled or the release quota is removed, then you will see the selling of the sugar stocks held by the mills seen coming in the market."

"Maybe ahead of the festive season, because post Rakshabandhan, we see Janmashtami, Ganesh Chaturthi and Navratri festivals. So, the crushing will only start in the month of November, because this time the monsoon is likely to get extended. Also, Diwali is on November 7. So, crushing will not start before October 31. So this is just the release quota having extended till December which is helping the sugar stocks," he added.

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First Published:Aug 24, 2018 5:57 PM IST