Cement shares hardens, India Cements surges 6%

Ambuja Cements, India Cements, Madras Cements and UltraTech Cement are up by 2-6%

Shares of cement manufactures have extended their Tuesday’s late afternoon rally on hopes of a favorable ruling from the Competition Commission of India (CCI) on cartelisation charges.

Ambuja Cements, India Cements, Madras Cements and UltraTech Cement are trading higher by 2-6% on the Bombay Stock Exchange compared to a marginal 0.17% rise in the benchmark index Sensex.

“A ruling has been expected since last few months though it has not yet been released. Traders are increasingly optimistic for a diluted order from the CCI, instead of more hefty penalties based on turnover or profits,” the Reuters report suggests

India Cements is the largest gainers surging 6% to Rs 80, extending its Tuesday’s 4% gain, with over two-fold jump in trading volumes. A combined 1.91 million shares have changed hands on the counter so far. Madras Cements and Ambuja Cements have rallied over 8% in past two trading sessions.