Shares of cement companies like UltraTech Cement, Dalmia Bharat, JK Cement, The Ramco Cements and Shree Cement were down in the range of 2 per cent to 6 per cent.
Stocks to Watch Today: AU Small Finance Bank will be in focus as the company has set June 10 as the record date for the proposed 1:1 bonus issue.
Charts of steel stocks signal further downside, indicating a fall up to 20 per cent in select shares; cement counters indicate a wait-and-watch approach
The management remained cautious over profitability of cement companies in the near future as it does not anticipate any relief in cost pressure.
According to a Bloomberg report, Gautam Adani's conglomerate is in advanced talks to acquire Holcim Ltd.'s businesses in India.
Holcim Ltd., the world's biggest cement maker, is considering a potential sale of businesses in India including Ambuja Cements.
Ambuja Cement is exhibits a positive bias, and is likely to further gains on follow-up buying; whereas other cement stocks need to overcome major hurdles.
Stocks to watch today: Shares of brokerage firms Angel One and ICICI Securities are also likely to be in focus ahead of the corporate earnings on Wednesday.
Going ahead, charts indicate likely revival in investor sentiment with further uptick in prices.
The commodity price rise has begun weighing on most sectors. One such industry is cement, which is facing the heat of high input costs. Given the uncertainty, how can investors play the theme?
Analysts believe current input cost headwinds are transitory as likely price hikes by companies will help aid margin pressures.
Despite these ongoing cost related challenges, demand outlook is expected to stay healthy from long-term perspective
Apart from higher coal/petcoke prices, the recent increase in crude prices/ocean freight rates may further put pressure on operating costs for the cement industry.
Shares of state-owned construction & engineering company NBCC (India), meanwhile, soared 13 per cent to Rs 39 on the BSE
Dec qtr results were disappointing as costs escalated and volumes came under pressure
Ambuja Cements, The Ramco Cements look weak on charts, while UltraTech Cement seems the best bet in the sector.
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Ambuja Cements and India Cements charts indicate breakout of 'Inverse Head and Shoulder' pattern, thus a bullish trend ahead.
Analysts expect under-performance by FMCG shares to continue
The rise in price has been attributed to inputs commodity cost pressure such as coal and diesel supported by rising demand