Cement
Stocks Outlook for the week – 17 to 21.11.2014
( www.rupeedesk.in )
We expect stocks of major
cement companies to follow the trend in the broader
market next week in the
absence of any sector-specific triggers. The bias is
expected to be positive
on revival of demand in key markets as construction
activity gains momentum.
Jul-Sep earnings of
cement companies have also largely been encouraging,
giving out the message
that the worst is over and the sector is embarking on a
high growth trajectory.
With monsoon having retreated, price hikes seem to have
resumed across most
regions, north in particular, where prices have improved by
3-4%, regaining some lost
ground in Aug-Sep period. Prices in south remain stable.
The broader market is
also rallying on positive sentiment, having closed at record
highs during the week
and the trend is likely to continue.