MARKET EYE-Indian cement companies warrant caution-J.P.Morgan

Thu Jan 10, 2013 3:02pm IST

Related Topics

Stocks

   
A statue of Ganesh, the deity of prosperity, is carried in a taxi to a place of worship on the first day of the ten-day-long Ganesh Chaturthi festival in Mumbai August 29, 2014. REUTERS/Danish Siddiqui

Ganesh Chaturthi Festival

During Ganesh Chaturthi idols will be taken through the streets in a procession accompanied by dancing and singing, and will be immersed in a river or the sea in accordance with Hindu faith.  Slideshow 

* J.P Morgan cautions the near-term outlook for Indian cement
companies remains "hazy", in contrast with market consensus for
a strong V-shaped recovery in infrastructure spending over the
next 12 months.
* The investment bank says a growth in industry demand of more
than 8 percent is unlikely over the next two years, as capacity
will continue to outpace demand.
* J.P.Morgan says Indian steel is a better play than cement.
* "Indian steel companies are adding little capacity and demand
increase would allow them to raise prices back to import
levels," the bank wrote in a note dated Wednesday. 
* Ambuja Cement shares down 2.6 percent and Ultratech
 falls 3.5 percent while India Cement shares
are down 2.1 percent.    

 (manoj.dharra@thomsonreuters.com;
manoj.dharra.thomsonreuters.com@reuters.net)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Market Eye

REUTERS SHOWCASE

HSBC PMI

HSBC PMI

Factory activity expands at slower clip in August.  Full Article 

Modi in Japan

Modi in Japan

Japan aims to double India investment in 5 years - Nikkei  Full Article 

Market Outlook

Market Outlook

Indian shares headed for correction, but outlook strong - BofA Merrill.  Full Article 

India Infrastructure

India Infrastructure

RBI rule handicaps India's infrastructure hopes  Full Article 

Book Talk

Book Talk

Reema Abbasi and a glimpse of Pakistan’s Hindu past  Full Article 

China Economy

China Economy

Retreat in China's PMIs heightens calls for policy easing.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage