Stocks of major cement companies are expected to move in a narrow range with a positive bias next week. India’s financial markets are shut Monday for Id-ul-Fitr. Market participants expect demand for cement to be good this monsoon season as rains have been below normal. Usually, demand for cement falls in the season as construction activity stops due to rains.
Firm demand has led to increase in cement prices. "All-India average cement prices (in July) stood at 305 rupees/bag, an increase of around 10 rupees/bag month-on-month. The firming up of the prices was driven by a delay in monsoons coupled with an increase in freight and raw material costs. Also, the Apr-Jun earnings of most cement manufacturers have been good, which has boosted sentiment on the stocks of these companies.
Shree Cements, however, was among the companies that disappointed with their Apr-Jun numbers. This week, the stock fell as the company's net profit in the quarter declined 39% from a year ago to 620.7 mln rupees. Exceptional loss of 200 mln rupees, foreign exchange loss of 250 mln rupees, and sharp rise in finance costs dragged down the company's bottomline.
Next week, UltraTech Cement shares are seen trading with a positive bias.
www.rupeedesk.in
Firm demand has led to increase in cement prices. "All-India average cement prices (in July) stood at 305 rupees/bag, an increase of around 10 rupees/bag month-on-month. The firming up of the prices was driven by a delay in monsoons coupled with an increase in freight and raw material costs. Also, the Apr-Jun earnings of most cement manufacturers have been good, which has boosted sentiment on the stocks of these companies.
Shree Cements, however, was among the companies that disappointed with their Apr-Jun numbers. This week, the stock fell as the company's net profit in the quarter declined 39% from a year ago to 620.7 mln rupees. Exceptional loss of 200 mln rupees, foreign exchange loss of 250 mln rupees, and sharp rise in finance costs dragged down the company's bottomline.
Next week, UltraTech Cement shares are seen trading with a positive bias.
www.rupeedesk.in
