Cement Stocks
Outlook for the week – 13 to 17.07.2015
(Seen positive for next week)
( www.rupeedesk.in )
The overall outlook for the
cement stocks in the coming week is positive as cement prices have
remained stable even during the
monsoon period. The stocks will also take cues from the Consumer
Price Index inflation data for
June which would be out on Jul 12. July month was very bad for the
cement sector last year. This
time around, companies have been able to sustain the prices even
during monsoon when demand for
the building material generally falls.
Major cement players like
UltraTech Cement Ltd and Shree Cement Ltd had raised prices by 10-18
rupees a 50-kg cement bag in the
national capital recently. In Mumbai, Ambuja Cements Ltd and
UltraTech Cement Ltd had hiked
the bulk prices of the same product by 10 rupees a 50-kg bag.
We expect that the monsoon
continued to be favourable, rural demand for the building material
would pick up in the coming two
months. Otherwise the cement stocks would be seen correcting.
Cement stocks may, however, go in
correction mode in a fortnight period if the monsoon doesn't
progress further as anticipated.
The cement demand is likely to
pick up in the third quarter of the financial year 2015-16 (Apr-Mar)
owing to better demand,
especially from the rural sector. Also, the overall economy is expected to
strengthen in coming days with
the government's thrust on infrastructure development.
