Cement shares fall after freight rate hike

ACC , UltraTech Cement and Ambuja Cements fall by 0.2%, 0.4% and 0.6% respectively.

Cement manufacturers' shares fall after the government on Friday pushed through a steep 6.5% hike in rail freight effective June 25.

ACC falls 0.2%, UltraTech Cement falls 0.4% while Ambuja Cements falls 0.6%.

Investors say that the cement industry transports nearly a third of its production through railways, and freight forms about a fourth of its operating expenses.

The cement players would not be able to pass on the hike in freight rates to customers at least during monsoon due to a weak demand, investors add.