Cement shares in focus; India Cements, Orient Cement up 5%
Ambuja Cement, Shree Cement, Ramco Cement, ACC, JK Cement, JK Lakshmi Cement and Ultratech Cement were up 2% to 3%, as compared to 0.32% rise in the S&P BSE Sensex.
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Shares of cement companies rallied by up to 13% on BSE in early morning trade on the expectations of higher demand going forward due to higher investments in infrastructure and affordable housing projects.
The fall in coal/pet-coke and diesel prices from their peak is expected to benefit the companies in the forthcoming quarter. Further, busy season surcharge withdrawal and axle load norms relaxation will benefit the cement players going forward.
Prism Johnson, Orient Cement and India Cements have surged 5% to 13% on BSE in the intra-day trade. Ambuja Cement, Shree Cement, Ramco Cement, ACC, JK Cement, JK Lakshmi Cement and Ultratech Cement were up 2% to 3%, as compared to 0.32% rise in the S&P BSE Sensex.
The infrastructure segment should continue to be the key demand driver, coupled with the prospective revival in rural housing. A normal monsoon and minimum support price (MSP) hike for agricultural produce should boost rural purchasing power in this fiscal.
Going ahead, analysts at YES Securities strongly believe that higher infrastructure investments should sustain with irrigation and industrial projects, metros and roads generating significant cement demand.
The fall in coal/pet-coke and diesel prices from their peak is expected to benefit the companies in the forthcoming quarter. Further, busy season surcharge withdrawal and axle load norms relaxation will benefit the cement players going forward.
Prism Johnson, Orient Cement and India Cements have surged 5% to 13% on BSE in the intra-day trade. Ambuja Cement, Shree Cement, Ramco Cement, ACC, JK Cement, JK Lakshmi Cement and Ultratech Cement were up 2% to 3%, as compared to 0.32% rise in the S&P BSE Sensex.
The infrastructure segment should continue to be the key demand driver, coupled with the prospective revival in rural housing. A normal monsoon and minimum support price (MSP) hike for agricultural produce should boost rural purchasing power in this fiscal.
Going ahead, analysts at YES Securities strongly believe that higher infrastructure investments should sustain with irrigation and industrial projects, metros and roads generating significant cement demand.