New Delhi, Aug. 28 -- Shares of Indian cement companies had rallied on expectations that a potential cut in the goods and services tax rate to 18% from 28% would push demand higher and thereby, prices. However, the initial excitement following the 15 August announcement has fizzled out.

Shares of large-cement makers ACC Ltd, Ambuja Cements Ltd and Shree Cement Ltd have declined 2.5-3% since 18 August.

A GST rate cut may help accelerate premiumization in the sector as it would make higher-grade cement more affordable, leading to shift in preferences.

"Pan-India players such as Ultratech and Ambuja/ACC will benefit the most, as the penetration of their premium products such as Ultratech's Weather Plus and ACC's F2R and Gold will increase...