Cement Stocks Outlook for the week – 23 to 27.11.2015
Seen
range-bound with negative bias next week
Stocks
of cement manufacturing companies are seen remaining range-bound next week
with
a negative bias mainly because of weak demand for the product in the country.
Almost
all the cement made in the country is consumed within and weakness in demand
mainly
in north and central India is affecting overall sales. This is expected to keep
cement
stocks weak in the near term as their current values are seen high, compared
with
market
demand for the commodity. While cement prices have been hiked in some key
markets
in western India, analysts see cement demand remaining low at least till
January
because
of weak construction activity and demand from the real estate sector. Demand
environment
for cement remains dismal mainly because of absence of pick-up in
government
projects, water scarcity in many areas and absence of traction in real estate
activities.