Rise in Shanghai stocks by 3% to 10% . Stock Market News.

Chinese stocks rise 3% to 10%, know what is the reason.

Shares of Chinese companies rose 3 to 10 percent on Monday. The reason for this is the low sugar production in the country. Due to limited supply, Chinese companies can earn higher profits. Analysts believe that companies like Balrampur Chini, Dhampur Sugar, EID Parry, Dwarikesh Sugar can benefit from this situation. "The prices of sugar and some other commodities are going up," said Sanjeev Bhasin, director, IIFL Securities.

Bhasin said, "The rise in sugar stocks will come due to the difference between demand and supply. Sugar production has come down." According to the data till 31 December, sugar production has come down by 30 per cent over the last one year.

Sugar production in Maharashtra has come down by 63 per cent, while production in Karnataka has come down by 22 per cent and in Uttar Pradesh by 7 per cent. Prateek Tholia, analyst at Elara Capital, said, "Sugar prices are going to be strong both domestically and globally."

The brokerage firm named Balaramupar Chini, Dhampur Sugar and Dwarikesh Sugar as its first choice. Since the beginning of this year, stocks such as Bannari Aman Sugars, Dalmia Bharat Sugar, Best Uttam Sugar Mills and Dwarikesh Sugar Industries have gone up by 10 per cent. JM Financial analyst Achal Lohade said, "Balrampur sugar comes at the top of the sugar industry. Its operations are efficient, the balance sheet is strong and the cash flow is good. At present, its price is also reasonable."

He said this stock gave a target price of Rs 280. Despite the decline in sugar production, analysts believe that its price will not increase much in India, because its stock is available in sufficient quantity. Apart from this, the government also has good control through the minimum support price. In the current situation, Chinese companies of Uttar Pradesh have benefited significantly. Their operation has been efficient and the price structure is also good.

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