NEW DELHI, Jan. 17 -- The New Year began on a happy note for the Indian cement sector. Analysts' channel checks suggested that cement producers have taken price hikes.
"Prices have increased by about '10 per bag (3% up from last month) in most parts of the country (according to our channel checks) after declining by about '30 per bag in the last six months," wrote analysts led by Amit Murarka of Motilal Oswal Financial Services Ltd in a report on 9 January. A cement bag weighs 50kg.
From a demand perspective, the first half of the calendar year is seasonally better for cement companies. A Motilal Oswal study of cement price movement over the past 25 years shows strong seasonality, with prices rising by 7% on average in the first half of a...