GOLDEN RULES FOR TRADING

Cement Stocks Outlook for the week – 29.02.2016 to 04.03.2016 (FY17 budget push eyed)

Cement Stocks Outlook for the week – 29.02.2016 to 04.03.2016
(FY17 budget push eyed)


Shares of cement companies will take cues from announcements in
the Union Budget for 2016-17 (Apr-Mar) next week as demand for the
building material remains weak across the country. Finance Minister
Arun Jaitley will announce the Union Budget on Monday. The cement
industry expects higher budgetary allocation for roads and rural and urban
housing schemes as higher public spending in these sectors would support
cement demand.

The government could reduce the excise duty on cement to make it more
affordable, given its focus on providing houses for all by 2022, Sanjeev
Singh, a cement sector. Shares of Jaiprakash Associates in particular are
seen down next week as the deal to sell its cement units to UltraTech
Cement is unlikely to go ahead.

UltraTech Cement today cancelled its deal with Jaiprakash Associates
to buy the entire cement business of the latter, including the mining leases
in Madhya Pradesh, following a Bombay High Court order. The Bombay
High Court declined to sanction the deal under the amended Mines
and Minerals (Development & Regulation Act) that prevents any transfer

of mines other than through auctions.