Cement Stocks Outlook for the week (11 - 15.06.2012)

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Jun 9, 2012, 10:53:38 AM6/9/12
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RUPEE DESK- Cement Stocks Outlook for the week (11 - 15.06.2012)

 

Stocks of major cement companies are seen flat next week as the scrips appear to be reasonably valued amid absence of positive triggers and due to seasonally slack demand. Given the current dull macroeconomic situation, cement stocks are reasonably valued, which is why there may be no further upside in the company share prices next week.


There is some demand in the market, which may support the cement stock prices to some extent. Reports that cement companies have cut prices last week after monsoon made its entry over Kerala may also put pressure on shares of cement companies in the coming sessions. Cement companies usually slash prices following the onset of rains as demand normally falls during the season because of weak construction activity in the country.


The industry is awaiting judgement by the CCI (Competition Commission of India) regarding cartelisation by cement companies clarity will emerge only once some judgment is made. The Competition Commission of India, which is investigating allegations of price rigging by companies is expected to make a decision within next 2-3 weeks, which may also weigh on the share prices of these companies.

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