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Informist, Friday, Sept. 11, 2026

 

MUMBAI – Shares of cement companies are unlikely to see any positive traction as crude oil prices remain high due to escalated hostilities in West Asia and, amid the bearish sentiment in the broader market. There is a downtrend visible for cement stocks right now, analysts said, and there are no positive signs expected for the sector in the near term. Stocks do not seem to display urgency to recover any time soon, they said. 

 

Margins of cement companies are expected to remain under pressure in the near future as petroleum coke prices started inching upwards again amid high crude oil prices. Though demand is largely steady across regions even in a seasonally weak quarter, cost concerns remain a key headwind for companies operating in the sector. Across India, the average price per bag was around INR 330 at the end of August, according to analysts.

 

According to dealers in east India, while demand in Patna was steady, construction activity in West Bengal and Jharkhand continued to be weak, Motilal Oswal Financial Services Ltd. said. Demand was weak in Odisha too, the brokerage said in its report dated Monday. In the western region of the country, construction activity is expected to pick up as the intensity of rains gradually slows.

 

However, in the eastern region, Odisha was still better compared to West Bengal and Bihar, Systematix Shares and Stocks (India) Ltd. said in its report dated Thursday. While demand in north India is stable, the same in southern India is slightly weak, though Telangana is showing some positivity signs. In the western region, Maharashtra is doing better than Gujarat, a lead research analyst at a top broking firm, said. Receding rains supported demand in Maharashtra. Meanwhile, demand in central India is subdued, he said. For the September quarter, cement realisations are expected to be flat on quarter, the analyst said.

 

Cement prices are currently low, compared with the end of the June quarter, Sudeep Anand, president of Systematix Group, said. On an average, companies are expected to hike prices by INR 15-20 per bag in September. In south India, price hikes have been taken and in Gujarat, they are expected in the coming week. Higher crude oil prices will continue to be an impediment to growth of companies in the sector. For September, cement companies' volumes are expected to grow 3-4% on year, Anand said.

 

"The recent attempts to raise prices across South, East and select West markets provide some early signs of improving pricing discipline, although the sustainability of these hikes will depend on demand recovery," Systematix said in its report.

 

However, when cement companies' margin will recover is still unclear, Saurabh Mitra, the associate vice president at Centrum Broking said. Some companies are expected to undertake price hikes in the near term but one-time price hikes aren't going to support companies' steady margin recovery. Price hikes need to be sustainable to have any material positive impact on companies, Mitra said. The cement industry is expected to post a 14% growth for financial year 2026-27 (Apr-Mar).

 

The Nifty Cement index has fallen for the past four weeks and shed 4.6% in this period. Immediate support for the index is seen at 14000 points, Nandish Shah, senior derivative and technical analyst, and assistant vice-president at HDFC Securities said. Friday, it closed almost a percentage lower at 14191.85 points.

 

TOP HEADLINES

* Arisinfra Solutions to give corporate guarantee of up to INR 1 bln to arm
* India Ratings assigns 'AA-' rating to JSW Cement's NCD issue of INR 5 bln
* HC rejects UltraTech plea against allowing builder association in CCI case
* ArisInfra arm gets order for project with development value of INR 2.8 bln
* CARE Ratings reaffirms 'A1+' rating on Shree Cement's INR 10 bln CP

 

Following are the resistance and support levels for key cement stocks for next week as per calculations based on their prices on the National Stock Exchange:

 

Company	Price	Week-on-week  change in %	Resistance	Support
ACC	1246.50	(-)2.90	1264.00	1221.80
Ambuja Cements	391.85	(-)3.30	396.90	385.10
Andhra Cements	42.70	(-)1.50	43.80	40.90
Grasim Industries	3281.90	(-)1.20	3319.20	3248.40
JK Cement	4843.50	(-)4.70	4951.80	4758.80
JK Lakshmi Cement	505.90	(-)1.90	517.60	490.30
Sagar Cements	146.25	(-)4.30	152.20	142.50
Shree Cement	22570.00	(-)5.40	22850.00	22230.00
UltraTech Cement	11000.00	(-)3.60	11220.00	10680.00
India Cements	346.90	(-)4.30	351.30	340.40
Index	Levels
Nifty 50	23398.10	(-)2.10	23575.90	23142.50
BSE Sensex	74781.76	(-)2.30	75376.70	73862.70

 

End

 

Reported by Ruchira Kagita

Edited by Deepshikha Bhardwaj

 

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