Cement counters crack; Ambuja and JP Associates top losers

Low demand, poor pricing expected to take a hit on several of cement makers

ultratech cement

Poor quarterly shows from India's two largest cement makers - ACC Ltd and Ambuja Cements have affected the sentiments on the other cement counters.

Low demand and poor pricing is expected to take a hit on several of the cement makers.

On a day when benchmark indices are trading around 1.25% down, stocks of majority of India's cement makers are down between 2.5 and 12%.

Stocks of Ambuja Cements, which are leading the losses owing to the restructuring of ownership resulting into an outgo of Rs 3,500 crore from company's balance sheet to its parent company Holcim, have lost a massive 12% on the BSE. The counter, currently, is trading at Rs 168.9 down Rs 22 from previous close.

Counter of Jaiprakash Associates, dominant major in central India, too slipped 9.5% to Rs 42.75 on the stock exchanges.

Even the south majors - India Cements and Madras Cement are trading weak, down between 2.5 and 3.5%.