Cement shares fall after freight rate hike
Reuters Market Eye - Cement manufacturers' shares fall after the government on Friday pushed through a steep 6.5 percent hike in rail freight effective June 25.
ACC (ACC.NS) falls 0.2 percent, UltraTech Cement (ULTC.NS) down 0.4 percent while Ambuja Cements (ABUJ.NS) falls 0.6 percent.
The cement industry transports nearly a third of its production through railways, and freight forms about a fourth of its operating expenses, investors say.
The cement players would not be able to pass on the hike in freight rates to customers at least during monsoon due to weak demand, investors add.
(Reporting by Abhishek Vishnoi)
- Tweet this
- Share this
- Digg this
Trending On Reuters
Monetary Policy Committee
Having agreed this week to formally adopt inflation targeting as a guiding star for monetary policy, India's government and central bank remain at odds over how crucial decisions are made. Full Article
PM Modi to ramp up help for Indian Ocean nations to counter China influence Full Article