Cement Stocks Outlook for the week – 08 to 11.03.2016
( www.rupeedesk.in )
Stocks
of cement-manufacturing companies are seen continuing the momentum
gained
over the past week and trading with a positive bias.
Various
proposals in the Union Budget for 2016-17 (Apr-Mar) have been positive for
the
cement sector. In the Budget, the government significantly increased allocation
to
agriculture
and farmers' welfare, which will boost rural incomes and cement demand.
The
total central Plan outlay for the roads and infrastructure sectors has also
been
raised,
which is expected to boost demand for cement.
The
cement industry, which derives around 60% of its demand from housing, 20%
from
infrastructure and 20% from industrial activities, will benefit from the
increase
in
allocation towards housing and infrastructure.
The
government's focus on infrastructure is evident from the fact that
overall
targeted expenditure for FY17 is 28% more than in FY16. This, along with a
number
of benefits provided on affordable housing, will aid recovery in cement
demand.