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Stocks of major cement manufacturers are seen rangebound with a positive bias next week, as investors await the Union Budget for 2013-14 (Apr-Mar) that will be table in the parliament on Thursday. There may be some positive bias on hopes that the government will announce higher spending for infrastructure, which will lead to an uptick in demand for the construction material. The marginal increase in prices in the last few weeks will also lead to positive sentiment for the stocks next week. The price hikes helped shares of cement makers gain 1-3% this week, with ACC and Ambuja Cements ending 3.3% higher. The data released by few cement companies suggest that cement despatches have increased 6% year-on-year and around 6% monthon- month in January 2013 as construction activities picked up after mid of January 2013. UltraTech Cement, Ambuja Cements and Shree Cement remain our preferred picks in the space. Even as cement industry bodies have demanded rationalisation and reduction in excise duty on the commodity, and some relief on costs. Both, Cement Manufacturers' Association and Cement Stockists and Dealers Association of Bombay had sought simplification in the process of excise duty implementation. Cement currently attracts an excise duty on its maximum retail price, plus an ad-valorem duty. The industry
Stocks of major cement manufacturers are seen rangebound with a positive bias next week, as investors await the Union Budget for 2013-14 (Apr-Mar) that will be table in the parliament on Thursday. There may be some positive bias on hopes that the government will announce higher spending for infrastructure, which will lead to an uptick in demand for the construction material. The marginal increase in prices in the last few weeks will also lead to positive sentiment for the stocks next week. The price hikes helped shares of cement makers gain 1-3% this week, with ACC and Ambuja Cements ending 3.3% higher. The data released by few cement companies suggest that cement despatches have increased 6% year-on-year and around 6% monthon- month in January 2013 as construction activities picked up after mid of January 2013. UltraTech Cement, Ambuja Cements and Shree Cement remain our preferred picks in the space. Even as cement industry bodies have demanded rationalisation and reduction in excise duty on the commodity, and some relief on costs. Both, Cement Manufacturers' Association and Cement Stockists and Dealers Association of Bombay had sought simplification in the process of excise duty implementation. Cement currently attracts an excise duty on its maximum retail price, plus an ad-valorem duty. The industry
