Cement Stocks Outlook
– 06 to 09.09.2016
In range, fine by
antitrust body factored in
( www.rupeedesk.in )
Stocks of cement companies are likely to stay range bound
next week, with positive movement seen in UltraTech Cement and Ambuja Cement.
The Competition Commission of India's imposition of 67 bln rupees as penalty on
11 cement companies has already been discounted by the market and it will
not have any direct impact on these stocks. The drop in
cement prices in the current quarter (Jul-
Sep) in south and west India were compensated by higher
price realisations in north and central
India. The market would await increase in prices as demand
would pick up post monsoon, thereby
driving the cement sector. In August, cement prices remained
stable in north and central India, with
weakness seen primarily in the west--Mumbai and Pune. Retail
prices in the western region fell by as
much as 16 rupees per bag during the month.