GOLDEN RULES FOR TRADING

Cement Stocks Outlook for the week – 08 to 12.09.2014

Cement Stocks Outlook for the week – 08 to 12.09.2014

We expect the positive trend in shares of major cement companies to continue next week,
barring Jaiprakash Associates which is likely to bear the brunt of negative market news.
The cement production rose by 16.5% year on year during July--the strongest growth in
the past 32 months--but decelerated in August as monsoon picked up exerting pricing
pressure. Prices corrected by 2-5% month-on-month in north, central, and west India.
While factors like low base, delayed monsoon etc. have benefitted, the industry is
surprised with the trend so far as the infra projects are yet to benefit from cement demand in a meaningful manner.