Cement Stocks Outlook For The Week – 04 To 08.12.2017

Cement Stocks Outlook For The Week – 04 To 08.12.2017

             Equity Cash/Futures/Options Segment 

Stocks of cement companies are seen trading on a mixed note next week due to lack of triggers and activities will mostly be stock-specific. UltraTech (Cement Ltd) and ACC (Ltd) are looking weak and may fall next week. Ambuja (Cements Ltd) is likely to trade sideways. Cement demand hasn't increased post-monsoon the way as was expected. As a result, the companies haven't been able to increase the price as much as they would have expected. Housing contributes around 70% to cement demand in the country, so demand has to come from there. Infrastructure (demand) can't make up for it. The order by Supreme Court banning the use of petroleum coke in Rajasthan, Haryana, and Uttar Pradesh is likely to increase cost for cement makers in these states. The court had also asked all states and Union territories to consider banning petroleum coke because of pollution. Petroleum coke is used as a fuel in cement production and is cheaper than coal. We remain positive on cement sector in medium- to long-term as they see affordable housing and higher infrastructure spending by the
Centre and state governments boosting demand. Rural demand is also seen increasing because of a better monsoon this year.

Source : Cogencis Information Services Ltd.

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