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

Thu Jan 10, 2013 3:02pm IST

Related Topics

Stocks

   

* 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:

Reuters Showcase

Land Ordinance

Land Ordinance

Modi says willing to make changes in land decree  Full Article 

Sahara Woes

Sahara Woes

SEBI cancels Sahara's portfolio management licence  Full Article 

Gold Demand

Gold Demand

India gold demand muted, eyes cut in import duty  Full Article 

Coffee's Hot

Coffee's Hot

IPO could value Cafe Coffee Day at $1 billion  Full Article 

Sahara Salaries

Sahara Salaries

Some staff say Sahara has not paid salaries for months   Full Article 

DLF Fined

DLF Fined

DLF says reviewing $8.4 million SEBI penalty  Full Article 

GM Corn

GM Corn

Monsanto says GM corn trial in final stage in India  Full Article 

Rail Budget

Rail Budget

Breakingviews - India goes back to future with $137 bln rail push  Full Article | Full Coverage 

Clean Energy

Clean Energy

India says clean energy a $160 billion opportunity over five years  Full Article 

Reuters India Mobile

Reuters India Mobile

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