Cement stocks surge on earning hope

Cement stocks are surging in Monday’s trading session, resulting from the optimism of cement companies expectantly seeing good days, which cheered investors mood in the first half of trading session, initiated by Prime Minister’s speech.

Stocks from the sector, such as ACC increased 4.23 per cent, which is trading at Rs 1563; Ambuja Cements rose 2.03 per cent, and is trading at Rs 244.35 on an intraday basis. At the same time, Ultratech Cement and Shree Cement also increased 2.37 per cent and 0.62 per cent respectively, on an intraday basis.

On April 23, Prime Minister Narendra Modi stated that poor infrastructure was hampering economic development, and also emphasised that more expenditure on basics such as roads, ports, power and railways would help accelerate the pace of growth. Further he stated that the vision of ‘New India’ could only be realised if all States work together, and urged them to speed up capital expenditure and infrastructure creation.

The earnings season has already kick started. The cement major, ACC announced results beating estimates for Q1CY17. The company's total sales for Q1CY17 came in at Rs 3174 crore, which represents a 17.67 per cent sequential increase and 8.11 per cent YoY increase. 

Whereas, Ultratech Cement’s Q4FY17 results are due on April 24.