| The government move to tame inflation by abolishing duty on building materials is seen as a big negative for cement companies, said analysts. Metal stocks also felt the pressure on duty cut move. |
| The stock of the country's biggest cement player ACC, which had a dream run in 2006 on the bourses, fell by Rs 78.8 or 7.1 per cent to Rs 1,037. The share price of Gujarat Ambuja, the fourth-largest cement maker, was down Rs 9.85 (6.7 per cent) to Rs 136.9. This is its biggest single-day drop since May 18. |
| Other stocks feeling the import duty impact were Grasim Industries and UltraTech Cement. The Grasim stock fell by Rs 89.4 or 3.1 per cent to Rs 2,805.35, while UltraTech, the the no. 2 producer, slipped Rs 52.4 or 4.7 per cent to Rs 1,059.35, its biggest slide since July 19. |
| "The news of no import duty on building materials will clearly have a big impact on cement companies," said Ajit Roongta of IDBI Capital Markets. The fact that the number of advancing stocks are narrowing at high levels itself was a dangerous signal for the markets, he felt. |
| The rollover analysis from the F&O segment was also showing different signals. Analysts said that the rollovers have not been good till yesterday and this could mean that any further buying may push up the markets further. But another view is that it could be a sign of weakness. |
| Weakness was also seen in banking stocks with BSE Bankex dropping by 2.17 per cent to 7,314.61. The State Bank of India stock fell Rs 50.25 (4.1 per cent) to Rs 1,173.95 after it said its net income fell to Rs 1,065 crore in the three months ended December 31. |
| The Union Finance Ministry yesterday removed import duties on portland cement and reduced duties on alloy steel, copper, aluminium and chemicals to lower manufacturing costs after inflation reached a two-year high this month. |
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