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Stocks of major cement companies will likely rise next week if companies report higher cement despatches for October. Cement companies' shares, however, will track the broader market if the despatches data doesn't offer any major surprises. In case of a rally in the broader market, cement counters are likely to outperform because the near-term sentiment for the sector remains positive.
Slew of earning are due next week and traders believe that stock-specific moves will influence the broader market. Hindalco Industries, Reliance Power,
Reliance Infrastructure, State Bank of India, and Cipla Ltd are among the companies that are due to declare earnings next week.
Sentiment for the sector is also positive as the expected revival in the economy is expected to boost demand for cement from infrastructure and real estate companies. We are of the view that cement prices may see some rise in the near-term, helping companies to clock higher realisation on sales.
