Cement shares crumble on delayed monsoon

DALAL STREET SPIKES

Cement pivotals Gujarat Ambuja crashed 5.07 per cent to Rs 264.95 while ACC ended 3.59 per cent lower to Rs 231.10 on selling pressure amid worries that a deficient monsoon may mean poor offtake of cement.

Even Grasim ended 5.25 per cent lower at Rs 959.20, however, the fall was mainly on company's announcement that, in view of the delay in the arrival of the monsoon, the company's viscose staple fibre (VSF) division at Nagda (Madhya Pradesh) was reducing production temporarily, by about 80 tonnes per day.

It is feared that the cut in production, which is a substantial 11 per cent of the company's total production, would affect the its second quarter (ending September) results.

Analysts said, another reason for a sharp fall in the stock prices was the low volume at the bourses as day traders and arbitrageurs stayed away from the market for the second day protesting the government's proposed turnover tax.