Cement Stocks Outlook for the Week – 27.02.2017 to 03.03.2017
Cement Stocks Outlook for the Week – 27.02.2017 to 03.03.2017
Stocks of cement companies are seen rising next week, as adequate supply of currency notes is seen
reviving demand for the commodity. Demand has started improving as the cash supply is improving. The demand since mid-January is much better than what it was in December post Demonetisation.
Cement demand had taken a hit after the government withdrew high-value banknotes from circulation
from Nov 9. Dealers across the country were forced to cut cement prices by 10-15% to clear inventories, raising fears about a sharp drop in the sector's profitability. However, cement prices have improved in Jan-Feb on the back of a rise in demand. Shree Cement Ltd has increased cement prices in Delhi-National Capital Region by 15 rupees per bag, while UltraTech Cement, Dalmia Bharat Ltd, ACC Ltd, Birla Corp Ltd have increased prices by 3-18 rupees in eastern states. The Union Budget for 2017-18 (Apr-Mar), with its focus on infrastructure and affordable housing, is also seen pushing up demand. There is no doubt that Budget will increase the demand for cement in the country. The only doubts are about the timing. The increase in demand because of Budget will most likely be felt in Oct-Dec, post monsoon. Finance Minister Arun Jaitley allocated a record 3.96 trln rupees for the infrastructure sector in the Budget, up 10.5% from 2016-17. He also announced a host of measures for the real estate sector, including according infrastructure status to affordable housing.
Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040
Cement Stocks Outlook for the Week – 27.02.2017 to 03.03.2017
Stocks of cement companies are seen rising next week, as adequate supply of currency notes is seen
reviving demand for the commodity. Demand has started improving as the cash supply is improving. The demand since mid-January is much better than what it was in December post Demonetisation.
Cement demand had taken a hit after the government withdrew high-value banknotes from circulation
from Nov 9. Dealers across the country were forced to cut cement prices by 10-15% to clear inventories, raising fears about a sharp drop in the sector's profitability. However, cement prices have improved in Jan-Feb on the back of a rise in demand. Shree Cement Ltd has increased cement prices in Delhi-National Capital Region by 15 rupees per bag, while UltraTech Cement, Dalmia Bharat Ltd, ACC Ltd, Birla Corp Ltd have increased prices by 3-18 rupees in eastern states. The Union Budget for 2017-18 (Apr-Mar), with its focus on infrastructure and affordable housing, is also seen pushing up demand. There is no doubt that Budget will increase the demand for cement in the country. The only doubts are about the timing. The increase in demand because of Budget will most likely be felt in Oct-Dec, post monsoon. Finance Minister Arun Jaitley allocated a record 3.96 trln rupees for the infrastructure sector in the Budget, up 10.5% from 2016-17. He also announced a host of measures for the real estate sector, including according infrastructure status to affordable housing.
