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