Cement shares harden further, Grasim Ind surges 7%

Shares of cement makers continued their upward march with most of the frontline stocks trading higher on the bourses on back of huge volumes.

Grasim Industries, India Cements, Dalmia Cement Bharat and Kesoram Industries have rallied more than 5% each, while Ambuja Cements, ACC and UltraTech Cement are up between 2-3% on the Bombay Stock Exchange.

The country's cement sector has back on a double-digit growth trajectory after a gap of two months indicates partial improvement in construction activities in May. Industry cement sales during May 2012 grew by around 13% on year-on-year basis and 4% on month-on-month basis to 20.3 million metric tonne (MT).

 

Analyst at IIFL Institutional equities have positive on the sector given the declining trend of capacity addition.