Equity Alert: Cement shrs dn despite govt allowing exports to Nepal

[K.Karthik Raja]

Equity Alert: Cement shrs dn despite govt allowing exports to Nepal
MUMBAI--11:27AM--Cement companies' shares were down despite the
government's
decision to ease ban on cement exports and allowing exports to Nepal.
Nepal is not a significant export market for Indian cement
manufacturers,
analysts said, adding that around 500,000 tn cement may have been
exported in
2007-08 (Apr-Mar) to Nepal.
"Nepal is not a big export market compared with even Indian
cities," an
analyst with an institutional brokerage said while highlighting
Mumbai's average
monthly cement consumption of around 650,000-700,000 tn.
Companies like Jaiprakash Associates and Prism Cement that were
exporting
cement to Nepal earlier are seen as beneficiaries to some extent,
analysts said.
Prism Cement and Jaiprakash Associates were down 1% and 2%,
respectively.
ACC, Grasim Industries, Ambuja Cements, and India Cements shares were
down 1-3%.
However, analysts do not view the government's latest move as a
change in
stance and do not expect a complete export ban withdrawal anytime
soon.
Government had banned cement exports in April to improve domestic
supplies
of the commodity in its efforts to rein in inflation then hovering
around 7%.
India's inflation rate is currently at a three-and-a-half-year
high
of 7.83%.