Shares of sugar and steel companies advanced as Union Budget 2023 boosted market sentiment. In her Budget speech, finance minister Nirmala Sitharaman announced that the custom duty exemption on manufacturing of cold rolled grain oriented (CRGO) steel and ferrous scrap will continue. On the other hand, sugar stocks rallied after the minister said that the government will allow benefits of Rs 10,000 crore for sugar co-operatives.
Cheering the development, Jindal Stainless jumped around 6 per cent to Rs 270 in the afternoon trade on the BSE. Tata Steel traded at Rs 122.65, up 2.51 per cent against its previous close of Rs 119.65. JSW Steel and Steel Authority of India also added 1.90 per cent and 1.10, respectively.
“To facilitate availability of raw materials for the steel sector, exemption from Basic Customs Duty on raw materials for manufacture of CRGO Steel, ferrous scrap and nickel cathode is being continued. Similarly, the concessional BCD of 2.5 per cent on copper scrap is also being continued to ensure the availability of raw materials for secondary copper producers who are mainly in the MSME sector,” Sitharaman said.
Coming to the sugar sector, shares of Renuka Sugars traded 2.81 per cent higher at Rs 53.10. The scrip opened at Rs 52.85 and touched a high and low of Rs 53.50 and Rs 52.25, respectively. Bajaj Hindusthan Sugar and Balrampur Chini Mills were also up over 1 per cent in the afternoon trade. Other sugar players including Sir Shadi Lal Enterprises and SBEC Sugar were also up over 4 per cent.
“I propose to provide an opportunity to sugar co-operatives to claim payments made to sugarcane farmers for the period prior to assessment year 2016-17 as expenditure. This is expected to provide them with a relief of almost Rs 10,000 crore,” FM said in her Budget speech.
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