Reports suggest that cement prices in South India have risen by Rs25 to Rs40 per 50-kg bag.
Shares of cement majors like ACC, Ambuja Cement, UntraTech, India Cement and others surged amid reports that cement prices in South India have risen by Rs25 to Rs40 per 50-kg bag.
ACC ended at Rs947, up Rs59 or ~6.5% over the previous close. It had earlier been as high as Rs969.90 and as low as Rs900.60 after opening at Rs905.
Ambuja Cement closed up 7.5% at Rs136.05 after touching a high of Rs137.80 and a low of Rs126.20. It had opened at Rs126.55.
Jaiprakash Associates was up about 1.5% at Rs118.40. India Cement gained 9.3% to finish at Rs115.90 after hitting a high of Rs118.90.
UltraTech Cement closed up 8.2% at Rs1,000, a day's high. HeidelbergCement India was up 7.3% at Rs53.50 after being as high as Rs55.75.
Madras Cement shot up 14% to end at Rs119.30 after touching a peak of Rs125.55. Dalmia Cement was up 8.4% at Rs223 after hitting a peak of Rs234.20.
JK Lakshmi Cement rose 7.2% to finish at Rs65.40, while Shree Cements gained 4.2% to close at Rs2,038.
Cement prices (gross retail) have risen by Rs15-20/bag in Hyderabad with effect from 7th September, according to reports. The revised prices in Hyderabad stand at Rs165-170/bag as versus Rs145-150/bag the previous week.
Cement prices in other regions in the South (Tamil Nadu and Karnataka) have also risen by Rs5-7/bag with effect. The ruling price in Karnataka and Tamil Nadu stands at Rs195-200/bag as against Rs175-180/bag in the previous week
In its reaction to the news, IIFL today said in a note to its clients that the development seems like the south based players are taking a conscious effort to
shore up the prices inspite of new supplies hitting the market. It called the move as "sort of a quasi cartelisation."
"However, our earnings estimate still remains unchanged inspite of this price hike as the fall in price this year has been much sharper than expected (30% in last one year in Southern region),"
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