Price hopes push up cement stocks

DALAL STREET SPIKES

Cement sector stocks were in the limelight on Tuesday with industry leader Grasim gaining over three per cent. The stock of the company ended 3.04 per cent higher at Rs 1,193.85 on the back of a volume of more than 1.61 lakh shares on the BSE.

Sector analysts said the cement sector is attracting fresh buying in anticipation that prices will hold firm over the medium term.

The Grasim stock has flared up in the last tow months, rising from a low of Rs 937 on July 14, to Tuesday's close of Rs 1193.85. Others like Gujarat Ambuja Cements was up 0.67 per cent to Rs 339.20, while ACC ended 0.63 per cent higher at Rs 273.50 on the back of impressive volumes.

Favourable demand-supply dynamics should support cement prices, analysts feel. While demand is expected to grow at a decent pace due to the thrust on infrastructure, supply growth should slow down, as there is no major expansion of capacity underway.