Five cement stocks rose by 0.04% to 3.01% at 14:30 IST on BSE on hopes of pick-up in demand after the government hiked basic excise duty on petrol and diesel in order to raise money for building highways.
Meanwhile, the S&P BSE Sensex was up 395.72 points or 1.44% at 27,903.26.
Among cement stocks, ACC (up 1.58%), Ambuja Cements (up 1.58%), Shree Cement (up 0.04%) and UltraTech Cement (up 3.01%), gained.
Grasim Industries rose 2.27%. Grasim has exposure to the cement sector through its subsidiary UltraTech Cement.
In order to fund the ambitious infrastructure development programme of the Government, particularly the building of 15000 kilometers (kms) of roads, during current fiscal year ending 31 March 2015 (FY 2015) and next fiscal year ending 31 March 2016 (FY 2016), the Government has decided to increase basic excise duty on petrol and diesel (both branded and unbranded) by Rs 2 per litre. Allocation of these resources to the road sector will also spur economic activity and employment generation arising from the road construction sector. These increased rates of basic excise duty will be effective from 2 January 2015. There will be no change in other excise duty rates applicable to these commodities.
Construction of roads may boost cement demand.
Meanwhile, Transport Minister Nitin Gadkari reportedly on Thursday, 1 January 2015, said all new road projects of the Centre will use concrete.
Powered by Capital Market - Live News
