Cement Stocks Outlook for the week – 08 to 11.03.2016 Seen continuing the positive bias

Cement Stocks Outlook for the week – 08 to 11.03.2016

Stocks of cement-manufacturing companies are seen continuing the momentum
gained over the past week and trading with a positive bias.

Various proposals in the Union Budget for 2016-17 (Apr-Mar) have been positive for
the cement sector. In the Budget, the government significantly increased allocation to
agriculture and farmers' welfare, which will boost rural incomes and cement demand.

The total central Plan outlay for the roads and infrastructure sectors has also been
raised, which is expected to boost demand for cement.

The cement industry, which derives around 60% of its demand from housing, 20%
from infrastructure and 20% from industrial activities, will benefit from the increase
in allocation towards housing and infrastructure.

The government's focus on infrastructure is evident from the fact that
overall targeted expenditure for FY17 is 28% more than in FY16. This, along with a
number of benefits provided on affordable housing, will aid recovery in cement