Cement Stocks Outlook for the week – 24 to 28.10.2016
(Derivative settlement pressure seen next week)
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The derivatives settlement next week will weigh on shares of
cement manufacturers as
it will put pressure on investors to exit long positions held by
them. Although shares
will remain under pressure, they are not expected to fall sharply
due to the prevailing
positive outlook for the sector.
Demand forecasts from two large-cap cement manufacturers UltraTech
Cement and
ACC project healthy growth in the second half of the current
financial year that ends
Mar 30.
Increased cement demand from government-funded infrastructure
projects, especially in
rural India, will lead to better volume pick-up and realisations
for cement companies.
Jul-Sep earnings of UltraTech Cement and ACC influenced their
share prices during the
week, and are also likely to set the trend for the industry in the
coming weeks.