New Delhi, Sept. 5 -- The reduction in GST on cement from 28 per cent to 18 per cent is expected to be a game-changer for the sector, according to a sector report by Nuvama Institutional Equities.

The sector received a major boost with the announcement of reducing GST on cement from 28 per cent to 18 per cent. Nuvama report says it will lower consumer costs and improve affordability in the near term.

"In the near term, we forecast most benefits from price cuts shall be passed on to consumer" noted the report.

The report also adds that this will limit the scope of any price hikes in the short term.

"Given cement demand is largely inelastic with reference to prices, we do not foresee any material uptick in demand due to these cuts"

It ...