Cement Stocks Outlook for the week – 29.02.2016 to 04.03.2016
(FY17
budget push eyed)
( www.rupeedesk.in )
Shares
of cement companies will take cues from announcements in
the
Union Budget for 2016-17 (Apr-Mar) next week as demand for the
building
material remains weak across the country. Finance Minister
Arun
Jaitley will announce the Union Budget on Monday. The cement
industry
expects higher budgetary allocation for roads and rural and urban
housing
schemes as higher public spending in these sectors would support
cement
demand.
The
government could reduce the excise duty on cement to make it more
affordable,
given its focus on providing houses for all by 2022, Sanjeev
Singh,
a cement sector. Shares of Jaiprakash Associates in particular are
seen
down next week as the deal to sell its cement units to UltraTech
Cement
is unlikely to go ahead.
UltraTech
Cement today cancelled its deal with Jaiprakash Associates
to
buy the entire cement business of the latter, including the mining leases
in
Madhya Pradesh, following a Bombay High Court order. The Bombay
High
Court declined to sanction the deal under the amended Mines
and
Minerals (Development & Regulation Act) that prevents any transfer
of
mines other than through auctions.
