Cement Stocks Outlook for the week - 12 to 16.12.2016
Cement Stocks Outlook for the week - 12 to 16.12.2016
( www.rupeedesk.in )
The stocks of cement manufacturing companies are expected to gain next week tracking the positive sentiment in the
broad market as foreign funds may continue to buy Indian equities. The markets are likely to build on gains with one
more week of rally seen. The gains will mostly be liquidity driven, with foreign funds likely to continue their buying
in Indian mutual funds segment.
Soaring liquidity with banks due to demonetisation of 500- and 1,000-rupee notes, and lower deposit rates are seen
driving investors to invest in equities now. Cement companies with high foreign investment are likely to gain in the
coming weeks.
Cement stocks, barring UltraTech Cement, closed higher last week. Large-cap stocks such as ACC and Ambuja
closed higher between 4-5%, while UltraTech ended marginally lower by 0.5% last week. Mid-cap stocks such as
India Cements, Shree Cement and JP Associates ended up 5-6%. Cement supply has been hit severely over the last
one month since the demonetisation announced on Nov 8.
However, there has not been any significant impact on the stock prices. Most cement stocks have corrected in the
last couple of months due to higher valuations and are now expected to have bottomed out. The dealers across the
country cut cement prices by 10-15% in the last one month to clear inventories, but companies' stocks resisted this as
well, without any serious correction in prices
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Cement Stocks Outlook for the week - 12 to 16.12.2016
