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:
  • Most Popular
  • Most Shared

Reforms Plan

REUTERS SHOWCASE

Border Talks

Border Talks

India names Ajit Doval as special envoy for China border talks.  Full Article 

WTO Deal

WTO Deal

U.S. seeks to step up India trade talks  Full Article 

Phone Masts

Phone Masts

American Tower to buy Bharti Nigeria phone masts for $1.1 billion  Full Article 

Infrastructure Plan

Infrastructure Plan

India targets private cash to build railways to its ports.  Full Article 

Shadow Banking

Shadow Banking

Reserve Bank planning more measures for NBFCs.  Full Article 

Auto Sector

Auto Sector

Hyundai Motor, Kia Motors lift 2014 global sales target on China, emerging markets  Full Article 

Oil Prices

Oil Prices

Some fund managers see oil falling to $60 without OPEC cut.  Full Article 

Project Shelved

Project Shelved

Jindal Steel shelves $10 bln project after coal setback.  Full Article 

Market Eye

Market Eye

Sensex, Nifty rise to record after China, ECB stimulus boosts risk appetite.  Full Article 

Reuters India Mobile

Reuters India Mobile

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