Cement Stocks Outlook for the week – 29.06.2015 to 03.07.2015
Seen
range bound next week as rains progress
( www.rupeedesk.in )
Cement
stocks are expected to be range-bound next week due to progress in the
southwest monsoon, which signals a weakening of demand and likely tepid Apr-Jun
quarter earnings by cement companies. Major downward trend is not seen in
cement stocks unless there is correction in the whole market, some adjustment
might be seen in cement stocks. Stocks will move in the range of 5- 10%. Cement
companies are likely to report weak results for Apr-Jun quarter. During
monsoon, infrastructure activities slow down, so this quarter is going to be
muted for the cement industry.
Government
projects like smart city and Atal Mission for Rejuvenation and Urban
Transformation will take long time to implement. Cement stocks are good from
the long-term perspective but shortterm view is negative because of monsoon and
slow infrastructure activities. However, have a shortterm positive outlook for
the stocks of ACC Ltd, Ambuja Cements Ltd and UltraTech Cement Ltd. UltraTech
Cement's stocks would trade with positive bias next week.
