Indian Sugar Stocks Rise on Oil Price Surge and Ethanol Demand Outlook

Shares of Indian sugar companies rose sharply following a surge in crude oil prices triggered by disruptions in tanker traffic through the Strait of Hormuz amid escalating Middle East tensions. Higher oil prices are expected to boost ethanol demand, prompting Brazil, the largest sugarcane producer, to divert more cane to ethanol production, reducing sugar output and tightening global supply. This dynamic has improved sentiment toward Indian sugar stocks, with gains ranging from around 4% to over 18% across various companies.