Cement Stocks Outlook for the week – 08 to 12.06.2015
(To
trade in range with negative bias)
( www.rupeedesk.in )
Cement
stocks are likely to trade in range with a negative bias next week due to poor
demand for the building material and declining prices. With the onset of
monsoon, cement prices are likely to come down. Demand is already suppressed
all over the country. Government projects will take another three to four
months to materialize.
In
the absence of any major sector-specific trigger, cement stocks are likely to
take cues from the broader market. ACC Ltd, Ambuja Cements Ltd and UltraTech
Cement ltd, being Nifty companies, are likely to rally according to the market.
Cement stocks are expected to see recovery only after August in anticipation of
demand picking up. Demand has not picked up in the current quarter and with the
monsoon coming up, recovery is ruled out.
The
market will start lapping up cement shares from August onwards. A long-term
sustainable rally will be seen in only in the second half of the financial year
2016 (Apr-Mar). It will be a range bound trade till August. Cement stocks are
going through correction. The general trend for these stocks is negative.
