www.rupeedesk.in
Cement stocks will remain rangebound next week, and any uptick in prices will be capped, as these stocks are currently in consolidation mode. There will be a bounce-back in most cement stocks. We don't think there will be a rally, and because the stocks are in consolidation mode, there could be a fall in prices of stocks after they hit their resistance levels. Most cement stocks had declined last week on profit booking. Investors have remained positive on cement companies for the past few months as a result of improvement in demand for the material across the country. We expect cement demand to grow at around 6.7% YoY (year-on-year) in 2012-13 (Apr-Mar) and around 8.9% in 2013-14, driven by demand from rural and semi-urban housing. An improvement in capacity utilisation rates coupled with higher input costs would keep cement prices at higher levels over the long term. In the remainder of the current financial year, cement prices are expected to either rise or remain firm on account of the increase in construction activities.
