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We expect stocks of cement companies to track the market trend over the next four sessions in absence of any sector-specific trigger. The market is seen moving with a negative bias during the week, taking directions from a host of domestic and overseas events--including developments in the US over the debt ceiling and the balance of payment data for India. Market will also watch closely the price behavior of cement as dealers said they have received intimation from cement makers on a possible hike. The recent price hike by cement companies came in for criticism from builders, who said demand has not picked up as much as the increase in price. Cement stocks have remained weak for some sessions now as doubt over revival in demand and ability of companies to hike prices remained doubtful in the current scenario. Near-term weakness in cement stocks can be used as an opportunity by long-term investors to increase their holdings. Shree Cement's scale of operations coupled with operational efficiencies would enable it to face challenging times and capitalize on cyclical upswings. Additionally, a strong balance sheet can enable it to continuously explore for expansion opportunities. Some analysts are also positive on India Cements, as they believe that its valuation at this time has factored in most of the negatives and see a gentle appreciation in the stock price as rural demand picks up. '
We expect stocks of cement companies to track the market trend over the next four sessions in absence of any sector-specific trigger. The market is seen moving with a negative bias during the week, taking directions from a host of domestic and overseas events--including developments in the US over the debt ceiling and the balance of payment data for India. Market will also watch closely the price behavior of cement as dealers said they have received intimation from cement makers on a possible hike. The recent price hike by cement companies came in for criticism from builders, who said demand has not picked up as much as the increase in price. Cement stocks have remained weak for some sessions now as doubt over revival in demand and ability of companies to hike prices remained doubtful in the current scenario. Near-term weakness in cement stocks can be used as an opportunity by long-term investors to increase their holdings. Shree Cement's scale of operations coupled with operational efficiencies would enable it to face challenging times and capitalize on cyclical upswings. Additionally, a strong balance sheet can enable it to continuously explore for expansion opportunities. Some analysts are also positive on India Cements, as they believe that its valuation at this time has factored in most of the negatives and see a gentle appreciation in the stock price as rural demand picks up. '
