Cement stocks fall after CCI raids on allegations of price cartelisation

This will not impact positive sentiment in the sector, say analysts

Shares of large cement players such as UltraTech Cement, The Ramco Cement, Shree Cement, and Ambuja Cements tumbled 2-5 per cent on Thursday following news that the Competition Commission of India (CCI) conducted searches at the companies on allegations of price cartelisation.

“Raid is a very harsh word. The CCI officials had come yesterday (Wednesday) for an enquiry related to pricing. They met our marketing officials along with other team members involved in pricing of cement. There was nothing unfriendly about their visit,” Hari Mohan Bangur, managing director of Shree Cement, told Business Standard.

The searches have come amid strong demand recovery