If you look at the 52-week highs, there is a concentration of sugar stocks. In Apr-21, Andhra Sugars, Avadh Sugars, Balrampur Chini, Dalmia Bharat, Dhampur and Dwarikesh touched new highs. Sugar rally was triggered by a combination of good demand, export subsidies and the massive ethanol opportunity.
With the environmental restrictions in China, Indian specialty chemicals are seeing a world of opportunity before them. In April, specialty chemical companies like Aarti Industries, Deepak Nitrite, Meghmani Organics, Rossari Biotech, SRF and Supreme Petrochem were among the stocks touching 52-week highs.
With the API story building up and global players looking at Indian pharma for supplies, a host of pharma players touched 52-week highs. This included Ajanta Pharma, Divi’s Labs, Jubilant Ingrevia, Lyka Labs, Morepen and Sequent Scientific.
The stocks touching 52-week lows were just too few to make a material difference. The 52-week highs outnumbered the 52-week lows in April; indicative of underlying strength in the markets.