Cement Stocks Outlook for the week – 13 to 17.02.2017
Cement Stocks Outlook for the week – 13 to 17.02.2017
Stocks of cement companies are seen moving up next week as the focus on infrastructure spending in the Budget for 2017-18 (Apr-Mar) islikely to push demand in the sector. The Budget allocated a record 3.96 trln rupees for infrastructure sector, up 10.5% from 2016-17. The Budget also announced a host of measures for real estate sector, including according infrastructure status to affordable housing. These measures are expected to improve real estate sector and consequently the cement sector. There was nothing specific for cement sector in the Budget, but there were a lot of feel good factors about the economy. This, along with the push to affordable housing, has been welcomed by the industry. Cement demand had taken a hit after the government's decision to demonetize high-value currency notes on Nov 8. Dealers across the country had resorted to 10-15% price cuts to clear inventories, raising fears about a sharp decline in the sector's profitability. However the results of cement companies in Oct-Dec were not as bad as anticipated by the market. The December quarter results have actually helped the stocks as they were much better than expected.
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Cement Stocks Outlook for the week – 13 to 17.02.2017
Stocks of cement companies are seen moving up next week as the focus on infrastructure spending in the Budget for 2017-18 (Apr-Mar) islikely to push demand in the sector. The Budget allocated a record 3.96 trln rupees for infrastructure sector, up 10.5% from 2016-17. The Budget also announced a host of measures for real estate sector, including according infrastructure status to affordable housing. These measures are expected to improve real estate sector and consequently the cement sector. There was nothing specific for cement sector in the Budget, but there were a lot of feel good factors about the economy. This, along with the push to affordable housing, has been welcomed by the industry. Cement demand had taken a hit after the government's decision to demonetize high-value currency notes on Nov 8. Dealers across the country had resorted to 10-15% price cuts to clear inventories, raising fears about a sharp decline in the sector's profitability. However the results of cement companies in Oct-Dec were not as bad as anticipated by the market. The December quarter results have actually helped the stocks as they were much better than expected.
