Cement Stocks Outlook For The Week: 26.02.2018 to 02.03.2018

Cement Stocks Outlook For The Week: 26.02.2018 to 02.03.2018

             Equity Cash/Futures/Options Segment 

Stocks of cement companies are seen gaining next week due to hopes of an increase in demand because of infrastructure projects and a pickup in construction activity in the busy season. However, Ambuja Cements Ltd, which almost doubled its Oct-Dec net profit on a year-on-year basis to 3.4 bln rupees because of a 17% increase in volumes, is seen falling next week due to its exclusion from Nifty 50 index from Apr 2. Ambuja Cements is expected to see continued selling in coming days as exchange-traded funds, who mirror the Nifty 50 index, will sell their exposure to the stock. Grasim Industries Ltd may gain as the stock will be included in Nifty 50 from Apr 2. Grasim was excluded from the index in May. We expect remain positive on cement stocks in the medium to long term as they expect government's focus on infrastructure and affordable housing to push up demand for the
commodity. In the broader market, benchmark indices are expected to move in a narrow range as concerns over inflation, at home and globally, and cost of investing in risky assets weigh on investors.

Source : Cogencis Information Services Ltd.

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