Cement stocks end mixed ACC, Ambuja down
CII order came after markets closed today
Cement stocks today closed on a mixed note, with ACC and Ambuja Cements lost up to 2%, while Ultratech Cements rose by as much as 2%, following reports that CCI has imposed a hefty penalty of about Rs 6,200 crore on 11 companies for price cartelisation.
The Competition watchdog CCI today imposed a hefty penalty of about Rs 6,200 crore on 11 leading cement companies, including ACC, Ambuja Cements, Ultratech and Jaypee Cements for price cartelisation.
The announcement came after markets close today.
Jittery investors adopted selling mode on some stocks, as ACC lost 1.19% to settle at Rs 1,256, while Ambuja Cements was down 2.19% to Rs 171.60 and India Cements declined by 1.11% to Rs 84.40 on the BSE.
However, Madras Cements was up 2.13%, UltraTech Cement moved up by 2.31% and JK Cement rose by 1.52%.
"Cement stocks may open lower tomorrow in a knee-jerk reaction to the CCI move. The rumor of penalty was there for a long time in the market so after opening lower stocks may stabalise later in the day tomorrow," Ashika Stock Brokers Research Head Paras Bothra said.
The other companies found guilty are Grasim Cements now merged with Ultratech Cements, Lafarge India, JK Cement, India Cements, Madras Cements, Century Cements and Binani Cements. The industry body Cement Manufacturers Association (CMA) has also been fined.
The firms in violation of the competitive laws have been directed to deposit the penalty within 90 days.
Meanwhile in the broader market, the BSE Sensex ended at 17,032.56, up 135.93 points.