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)
Trending On Reuters
India should avoid fixating on an inflation target given the need to ensure economic growth and financial stability, former central bank governor Duvvuri Subbarao warned on Tuesday. Full Article