Cement companies warrant caution: J.P.Morgan

Thu Jan 10, 2013 4:54pm IST

Related Topics

Stocks

   

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)

FILED UNDER:

REUTERS SHOWCASE

2015: India Outlook

2015: India Outlook

India in 2014: A dream run for markets  Full Article 

Funding Woes

Funding Woes

Co-founder of SpiceJet seeks time to finalise rescue  Full Article 

Flying Back on Course

Flying Back on Course

The inside story of the new Airbus A350 jet  Full Article 

Oil Prices

Oil Prices

Oil rebounds above $62, tracking broader markets  Full Article 

Tracking Gold

Tracking Gold

Gold inches higher on weaker dollar, Asian buying  Full Article 

Cyber Attacks

Cyber Attacks

China condemns cyberattacks, but says no proof N.Korea hacked Sony  Full Article 

Connecting Markets

Connecting Markets

China stock connect scheme scorecard throws up surprises  Full Article 

Reuters India Mobile

Reuters India Mobile

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