Sensex Today | Stock Market View: Vincent KA, Geojit FInancial Services on outlook for cement sector

 



The cement prices on a pan-India basis have been on a declining trend since last October. This decline is primarily due to weak demand, influenced by various factors including the extreme weather conditions, and state elections in certain regions. Currently, the expectation of pick up in construction activity before the monsoon season explains the current price hike. Additionally, the positive outlook on the real estate sector will support, as the major demand contribution comes from the housing sector. There may be a short-term pause around the election period and on account of monsoon, we anticipate the current prices to moderate in the near-term.