Reuters Market Eye - 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.
(Reporting by Manoj Dharra)
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With the Nifty breaching 8,500, sentiments are again bullish. But markets have been in the 8,200-8,600 range for some time and stocks across the board do not give the required confidence except for the liquidity factor. Many frontline stocks are not participating on the upside and the core sector is in a downtrend, writes Ambareesh Baliga. Column