Sugar Feedstock Barred For Ethanol, FPI Exits And Bank Q2 Results In Focus

The central government has barred sugarcane juice and sugar syrup as feedstocks for ethanol procurement in the 2026-2027 supply cycle, directing that sugar diversion for ethanol be reduced to zero amid domestic price and supply concerns. Oil marketing companies have invited bids for around 1,100 crore litres of ethanol, placing greater emphasis on alternative sources such as maize, which now accounts for a major share of domestic ethanol output. Meanwhile, Indian equity benchmarks saw a volatile opening in a truncated trading week, with the Nifty hovering near the 23,000 mark. In the banking sector, reactions remained mixed following quarterly earnings: Punjab National Bank and ICICI Bank traded higher on strong profitability, while Axis Bank and HDFC Bank witnessed selling pressure. Yes Bank evaluated legal options regarding additional tier-1 bond liabilities. Concurrently, the Union Finance Minister attributed foreign portfolio investor equity outflows to excessive global liquidity while maintaining that domestic economic fundamentals remain sound.