The cement industry demand is slowly improving due to pent up demand and improved rural demand
UltraTech, Shree Cement, JK Cement, and Ambuja Cements among analyst picks
JK Lakshmi Cement, UltraTech Cement, HeidelbergCement India, Dalmia Bharat and JK Cement were up in the range of 2 per cent to 4 per cent on the BSE
Individually, ACC rallied 6%, Ambuja Cements & JK Cement surged 5% each, while Ramco Cements, Shree Cement, India Cements, Heidelberg Cement India & UltraTech Cement were up in the range of 2% to 4%
After the demand disruption caused by the nation-wide lockdown, there has been a recovery in demand in the rural areas, primarily driven by pre-monsoon work.
Shree Cement, HeidelbergCement India, India Cements were also up in the range of 2-4 per cent
Orient Cement, Sanghi Industries, Heidelberg Cement and Star Cement, rallied more than 5 per cent each on the BSE in intra-day trade.
Orient Cement, Star Cement, India Cements, JK Lakshmi Cement, HeidelbergCement India, Ramco Cements, Shree Cement and Dalmia Bharat from the S&P BSE 500 index were up more than 3 per cent each.
Amid the gloomy GDP print; however, what is noteworthy is that the government spending rose sharply to 15.6 per cent during the quarter, as against 8.8 per cent in 1QFY20.
Having witnessed a strong demand environment during H2FY18 till FY19, domestic cement firms are likely to report subdued sales volume in Q1FY20