India cement dealers eye demand uptick from Dec after festive lull - Nomura

Nuvoco Vistas

21/11/2023 07:20

** Brokerage Nomura says Indian cement dealers expect
"significant" demand uptick from December after festive season
and state elections subdued volumes in October and first half of
November 
    ** Adds pan-India trade prices moderated by 7 rupees/bag led
by price declines in all regions barring south
    ** Lower infra spend by states ahead of December elections
affected demand in south India, some price reversal expected as
players start to push for market share in H2FY24 - note 
    ** Nomura analysts note festive, October price hikes
weakened demand in north and west markets while central region
lacking on crop failure in Madhya Pradesh 
    ** Ban on construction activities in the Delhi NCR region
hit demand, dealers expect recovery as labour unavailability
eases post festivals - note 
    ** Brokerage expects Nuvoco Vistas  NUVO.NS  and Dalmia
Bharat  DALB.NS  to benefit the most from strong pricing in the
east 
    ** Prefer Shree Cement  SHCM.NS  and Nuvoco - Nomura

 (Reporting by Hritam Mukherjee in Bengaluru)
 ((Hritam.Mukherjee@thomsonreuters.com;))