Moneycontrol Bureau
Shares of UltraTech Cement rose 5 percent intraday on Tuesday after Morgan Stanley has said, in a note, that cement companies have raised prices across region.
The brokerage said that relative to recent cement price lows, the highest increases are in the South and North, followed by the West and East. This implies an increase of around 2-10 percent relative to recent lows in various regions. However, it also added that the demand trend is still subdued across regions.
“There is an expectation of a pickup in volumes in QE March 2015, but our channel checks suggest that incremental on-ground activity remains subdued for now and visibility of a meaningful demand pickup remains low. We believe that a pickup in project-related demand is key for demand to improve along expected lines,” Morgan Stanley added.
Meanwhile, media report suggests the Kumar Mangalam Birla-run company has dropped out of race for Holcim-Lafarge assets which was perceived as a big overhang on the stock.
At 14:46 hrs UltraTech Cement was quoting at Rs 2,802.50, up Rs 101.25, or 3.75 percent on the BSE.
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