Cement Stocks
Outlook for the week – 04 to 08.08.2014
Stocks of major cement companies
are seen tracking the broader market in the absence of
a sector-specific trigger. The
bias may turn negative as the monsoon, now in full-swing,
dents impact for the construction
material.
The market will also keep watch
on the Reserve Bank of India's policy stance on
Tuesday. Optimists believe a rate
cut is in the offing with retail inflation trending down
and with the monsoons progressing
well, but most say the RBI may maintain status quo
with promise of future actions.
The cement sector has been
battling fall in demand and lower prices with lack of
movement in infrastructure orders
and housing activity. However, several steps by the
new government have boosted
sentiment and are seen as major growth drivers.
Performance of cement
manufacturers was largely subdued in Apr-Jun compared with the
year-ago period, but on a
sequential basis, there was improvement in topline and bottomline.
