Ambuja Cements, ACC & Other Cement Stocks Rises Upto 4.5%
Cement stocks plastered strong gains in trade by rising 2.0-4.5 percent, including Shree Cement, UltraTech Cement, Ambuja Cements and ACC.
While broader indices started the day of September 6 lower, shares of UltraTech, Shree Cement, Ambuja, ACC, Ramco, and JK Lakshmi Cement covered strong gains in trade, rising 2-4.5 percent.
The two biggest gainers in the Nifty index during the first hour of trading were Shree Cement and UltraTech Cement.
With 13,985,396 volumes, Ambuja Cement was one of the top five most active shares on the NSE.
After the Adani group bought Holcim’s stake in ACC, Ambuja, experts continue to believe that the sector is ready for a re-rating.
On September 2, Morgan Stanley Asia purchased 9.4 lakh shares of ACC via an open commercial transaction for more than ₹215 crore.
The National Stock Exchange (NSE) has bulk deal data that shows Morgan Stanley Asia (Singapore) Pte bought 9,41,557 shares of the company.
Adani launched a ₹31,000 crore open offer on 26th August to acquire a further 26 percent of ACC from public shareholder Ambuja Cements.
According to Krishna Kumar Karwa of Emkay Global, “Cement companies will see a strong H2 as input cost pressures decline & realizations improve.”
The brokerage firm has a buy call with a target value of ₹ 7,100 on UltraTech Cement and a buy call with a targeted price of ₹ 23,550 on Shree Cement.
Axis Securities has a Buy call with a target value of ₹ 3,020 on JK Cement in the meantime.
The pressure from the CCI scanner on the cement cartelization is causing the stocks to grow while trembling.
According to reports, a Competition Commission of India investigation discovered up to 20 businesses in the eastern and southern parts of the nation engaging in price-fixing and anti-competitive agreements.
According to sources, manufacturers’ associations, ACC Limited, UltraTech Cement, Dalmia Cement, Shree Cement, NUVOCO Vistas Corp., and Ambuja have asked the CCI for extra time to file their response to claims of cartelization.